Question

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

Answer 1

Answer: $1950 option D) .

Step-by-step explanation:

Answer 2

the difference in the amount of interest Stephanie would have to pay for each of these two loans is $1950 . Correct option D) .

Step-by-step explanation:

Here we have , 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. We need to find the difference in the amount of interest Stephanie would have to pay for each of these two loans . let's find out:

a 4-year loan at 3% simple interest :

⇒ $4(\frac{15000(3)}{100})$         { As loan is for 4 years we multiply by 4 }

⇒ $4(150(3))$

⇒ $$1800$

a 5-year loan at 5% simple interest :

⇒ $5(\frac{15000(5)}{100})$         { As loan is for 5 years we multiply by 5 }

⇒ $5(150(5))$

⇒ $$3750$

So , Difference = $3750  - $1800 = $1950

Therefore , the difference in the amount of interest Stephanie would have to pay for each of these two loans is $1950 . Correct option D) .