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22 September, 17:31

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 interest

Holly would have to pay for each of

these two loans?

$1,600

$3,000

$4,600

$1,400

D)

(8,12A)

+5
Answers (1)
  1. 22 September, 18:25
    0
    The answer is $1,400

    Here is the work:

    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.
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