Two customers took out loans from a bank.



• Monika took out a 4-year loan for $10,000 and paid 5.2% annual simple interest.

• Saul took out a 6-year loan for $10,000 and paid 4.9% annual simple interest.



What is the difference between the amounts of interest Monika and Saul paid for their loans?

$940.00

$80.00

$860.00

$1076.62

1 answer

To calculate the difference in the amounts of interest Monika and Saul paid for their loans, we first need to find how much interest each of them paid.

For Monika:
Interest = Principal x Rate x Time
Interest = $10,000 x 0.052 x 4
Interest = $10,000 x 0.208
Interest = $2,080

For Saul:
Interest = Principal x Rate x Time
Interest = $10,000 x 0.049 x 6
Interest = $10,000 x 0.294
Interest = $2,940

Now, let's find the difference between the interest amounts:
$2,940 - $2,080 = $860

Therefore, the difference between the amounts of interest Monika and Saul paid for their loans is $860.00.