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???
Responses
A $1092​$1092​
B $640$640
C $452$452
D $1732

Answer 1

To find the difference in the amount of interest paid by Jarrod and Harold, we first need to calculate the interest paid by each of them.

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

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

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

Therefore, the answer is C) $452.