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Stephanie is taking out a loan in the amount of $15,000. Her choices for the loan are a 4-year loan at 3% simple interest and a 5-year loan at 5% simple interest. What is the difference in the amount of interest Stephanie would have to pay for each of these two loans? Question 5 options: $3,750 $4,550 $1,800 $1,950

Respuesta :

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The difference in the amount of interests is $1950.

Step-by-step explanation:

The loan amount is $15,000.

There are two options fro Stephanie to take her loan of $15,000.

  • The first option is 3% simple interest for 4 years.
  • The second option is 5% simple interest for 5 years.

To find the amount of interest, the formula used is :

Interest = [tex]Pnr /100[/tex]

where,

  • P is the principal amount.
  • r is the rate of interest per year.
  • n is the number of years.

In the first case, P= 15,000 and r= 3 and n=4.

Interest = [tex](15000\times4\times3) / 100[/tex]

⇒ [tex](15000\times12) / 100[/tex]

⇒ 1800

The interest amount is $1800.

In the second case, P= 15,000 and r= 5 and n=5.

Interest = [tex](5000\times5\times5) /100[/tex]

⇒ [tex](15000\times25) /100[/tex]

⇒ 3750

The interest amount is $3750.

The difference in the amount of interest Stephanie would have to pay for each of these two loans = amount of interest from 2nd option - amount of interest from 1st option.

⇒ 3750 - 1800

⇒ 1950

The difference in the amount of interests is $1950.

agtlmrag

Answer:

The difference in the amount of interests is going to be $1950.

Step-by-step explanation:

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