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vichka [17]
2 years ago
7

Which loan will result in the least amount of interest paid?

Social Studies
1 answer:
dusya [7]2 years ago
3 0

The loan that would result in the least interest amount paid is  $10,000 at 2 percent simple interest for four years.

<h3>What is simple interest and compound interest?</h3>

Simple interest rate is the interest that is paid only on the principal portion of a loan. This means that the debtor does not pays interest on the interest rate already accrued. This differs from compound interest where the debt holder pays interest on the principal and the interest rate already accrued.

As a result, the interest paid when the loan has a simple interest would be lower than if interest was compounded.

To learn more about compound interest, please check: brainly.com/question/26367706

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