To find the amount of interest paid by Jarrod, we use the formula: Interest = Principal * Rate * Time.
Interest = $4,000 * 0.032 * 5 = $640.
To find the amount of interest paid by Harold, we use the same formula: Interest = Principal * Rate * Time.
Interest = $4,000 * 0.039 * 7 = $1,092.
The difference between the amount of interest Jarrod and Harold paid for their loans is $1,092 - $640 = $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