holly is taking out a loan in the amount of 10,000 her choices for the loan are a 4 year loan at 4% simple interest and a 6 year loan at 5% simple interest what is the difference in the amount of holly would have to pay for each of these two loans
holly is taking out a loan in the amount of 10,000 her choices for the loan are a 4 year loan at 4% simple interest and a 6 year loan at 5% simple interest what is the difference in the amount of holly would have to pay for each of these two loans
10,000 X 4/100 X 4 years =$1,600 Interest Holly has to pay on 4%, 4-year loan.
10,000 X 5/100 X 6 years =$3,000 Interest Holly has to pay on 5%, 6-year loan.
$3,000 - $1,600 =$1,400 Difference in interest between the two loan choices.
