Question

Henry is buying a boat and is taking out a loan in the amount of $10,000. His choices for the loan are a 5-year loan at 5.00% annual simple interest and a 7-year loan at 6.00% annual simple interest. What is the difference in the amount of interest Henry would have to pay for these two loans?

A) $850

B) $1,700

C) $2,500

D) $4,200
Please answer fast

Answer 1

B

Explanation:

Formula is

Interest=loan ×interest rate×time

Solve for the first choice

I=10,000×0.05×5=2500

Solve for the second choice

I=10,000×0.06×7=4200

The difference in the amount of interest

4,200−2,500=1700