Question

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?.

Answer 1

Step-by-step explanation:

Step-by-step explanation:

The formula for determining simple interest is expressed as

I = PRT/100

Where

I represents interest paid on the loan.

P represents the principal or amount taken as loan

R represents interest rate

T represents the duration of the loan in years.

Considering Henry's loan,

P = 5000

R = 4.2

T = 4 years

I = (5000 × 4.2 × 4)/100 = $840

Considering Ingrid's loan,

P = 5000

R = 3.9

T = 6 years

I = (5000 × 3.9 × 6)/100 = $1170

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

1170 - 840 = $330