Two customers took out loans from a bank.​

Question

Jarrod took out a 5-year loan for $4,000 and paid 3.2% annual simple interest. ​

Harold took out a 7-year loan for $4,000 and paid 3.9% annual simple interest. ​

What is the difference between the amount of interest Jarrod and Harold paid for their loans???

A $1092

B $640

C $452

D $1732

Answer 1

For Jarrod's loan, the interest can be calculated using the formula:
Interest = Principal * Rate * Time

Interest = $4,000 * 0.032 * 5 = $640

For Harold's loan, the interest can be calculated in the same way:
Interest = $4,000 * 0.039 * 7 = $1,092

The difference between the amount of interest Jarrod and Harold paid is:
$1,092 - $640 = $452

Therefore, the correct answer is C) $452.

Answer 2

are you sure?

Answer 3

Apologies for the incorrect answer. Let's redo the calculation.

For Jarrod's loan:
Interest = Principal * Rate * Time
Interest = $4,000 * 0.032 * 5 = $640

For Harold's loan:
Interest = Principal * Rate * Time
Interest = $4,000 * 0.039 * 7 = $1,092

The difference between the amount of interest Jarrod and Harold paid is:
$1,092 - $640 = $452

Therefore, the correct answer is C) $452.