Question

!PLEASE HELP!

Two customers took out bank loans.

• Mary took out a 4-year loan for $10,000 and paid 6.50% interest compounded annually
• Kyle took out a 6-year loan for $10,000 and paid 4.50% interest compounded annually

What is the difference between the amounts of interest Mary and Kyle paid for their loans?
A) $123.87
B) $157.94
C) $212.30
D) $287.69

Answer 1

You need to use the compound interest formula here and then subtract both of the answers so you get B) $157.94