Question

Help!!! Two customers took out car loans from a bank.

Robert took out a 4-year loan for $30,000 and paid 4.9% annual simple interest.
Susan took out a 6-year loan for $30,000 and paid 4.5% annual simple interest.
What is the difference between the amounts of interest Robert and Susan paid for their car loans?

Enter your answer in the box.

Answer 1

• Susan paid $2220 more

Explanation:

Use the interest formula:

• I = Prt, where P - amount of loan, r- interest rate, t- time in years

Robert:

• I = 30000*(4.9/100)*4 = 5880

Susan:

• I = 30000*(4.5/100)*6 = 8100

Difference in amounts of interest:

• 8100 - 5880 = 2220

Susan paid $2220 more