Question

Henry took out a 4 year loan for 5,000 and payed 4.2% simple annual interest. Ingrid took out a 6 year loan for 5,000 and payed 3.9% simple annual interest. What is the difference between the mounts of interest Henry and Ingrid payed for their Loans

Answer 1

Ingrid pays 330 more than Henry.

OR

Henry pays 330 less than Ingrid.

Explanation:

SI = Simple Interest

P = Principal

R = Rate

T = TIme

Henry

=> SI = P x R x T / 100

=> SI = 5,000 x 4 x 4.2 /100

=> SI = 50 x 4 x 4.2

=> SI = 200 x 4.2

=> SI = 840

Ingrid

=> SI = P x R x T / 100

=> SI = 5,000 x 6 x 3.9 / 100

=> SI = 50 x 6 x 3.9

=> SI = 300 x 3.9

=> SI = 1170

1170 - 840

=> 330

Ingrid pays 330 more than Henry.

OR

840 - 1170

=> -330

Henry pays 330 less than Ingrid.