Answer:
Step-by-step explanation:
Step-by-step explanation:
The formula for simple interest is expressed as
I = PRT/100
Where
P represents the principal
R represents interest rate
T represents time in years
I = interest after t years
Considering the 36-month loan,
T = 36 months = 36/12 = 3 years
P = $15000
R = 6.5%
Therefore
I = (15000 × 6.5 × 3)/100
I = 292500/100
I = $2925
Considering the 48-month loan loan,
T = 48 months = 48/12 = 4 years
P = $15000
R = 7.5%
Therefore
I = (15000 × 7.5 × 4)/100
I = 450000/100
I = $4500
The difference in the amount of interest Ella would have to pay for these two loans is
4500 - 2925 = $1575
