$2,514 and $2,027. Samantha pay over the three years $2,514 of interest, while Tomas will be earn $2,027 at the end of the four years.
These are problems of simple interest, whose formula is I = Prt. Where I is interest, P is principal (intial value), r is the interest rate, and t is time (year).
The simple interest refers to the interest that an initial capital produces in a period of time, which does not accumulate to the capital to produce the interests of the following period; concluding that the simple interest generated or paid for the capital invested or borrowed will be the same in all the periods of the investment or loan while the interest rate and the term do not change.
Samantha wants to borrow $7,618 for 3 years at an interest rate of 11% per year. How much interest will Samantha pay over the three years?
I = Prt, with P = $7,618, r = 11%/100=0.11, and t = 3 years.
I = (7618)(0.11)(3) = 2513.94 ≅ 2514
Tomas invested $6,874 dollars for 4 years. If he was paid an interest rate of 7.37% per year. How much interest will be earn at the end of the four years.
I = Prt, with P = $6,874, r = 7.37%/100 = 0.0737, and t = 4 years
I = (6874)(0.0737)(4) = 2026.45 ≅ 2027
