To find the amount of interest paid by Jarrod, we multiply the loan amount ($4000) by the interest rate (3.2%) and the number of years (5).
Interest paid by Jarrod = $4000 * 0.032 * 5 = $640
To find the amount of interest paid by Harold, we multiply the loan amount ($4000) by the interest rate (3.9%) and the number of years (7).
Interest paid by Harold = $4000 * 0.039 * 7 = $1092
The difference in the amount of interest paid by Jarrod and Harold is $1092 - $640 = $<<1092-640=452>>452. Answer: \boxed{452}.
Two customers took out loans from a bank.
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??
1 answer
1 answer