To find the amount of interest paid by each customer, we will use the formula for simple interest:
Interest = Principal x Rate x Time
For Jarrod:
Interest = $4,000 x 0.032 x 5 = $640
For Harold:
Interest = $4,000 x 0.039 x 7 = $1,092
To find the difference between the amount of interest paid by Jarrod and Harold, we subtract the interest paid by Jarrod from the interest paid by Harold:
$1,092 - $640 = $452
Therefore, the correct answer is C) $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???
Responses
A $1092$1092
B $640$640
C $452$452
D $1732
1 answer