Two customers took out loans from a bank.

• Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.

• Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.

What is the difference between the amounts of interest Henry and Ingrid paid for their loans?

Question

Jaycee Wade

Mathematics

21 January, 23:21

Two customers took out loans from a bank.

• Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.

• Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.

What is the difference between the amounts of interest Henry and Ingrid paid for their loans?

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Answers (1)

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Paisley Jensen · Answer 1

difference between the amount of interest Henry and Ingrid paid for theirs loans is Henry is $8.4/year and Ingrid will pay $11.7/year. Difference is 3.3 Henry would pay less then Ingrid per year.

Step-by-step explanation:

Create two rows and columns of Total year, amount, interest, 1-6 years. simple interest is based on P = Principal, N = number of years, r rate of interest. formula = PNR/100. Principal amount is the loan amount acquired. N is the number of years you opting the loan. R rate of interest is annual simple interest applied for the loans amount. Analysis shows increases number year has high rate of interest.

Two customers took out loans from a bank.• Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.• Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.What is the difference between the amounts of interest Henry and Ingrid paid for their loans?