Henry is buying a boat and is taking out a loan in the amount of $10,000. His choices for the loan are a 5-year loan at 5.00% an

Question

3 years ago

14

Henry is buying a boat and is taking out a loan in the amount of $10,000. His choices for the loan are a 5-year loan at 5.00% an

nual simple interest and a 7-year loan at 6.00% annual simple interest. What is the difference in the amount of interest Henry would have to pay for these two loans?
A) $850

B) $1,700

C) $2,500

D) $4,200
Please answer fast

Mathematics

1 answer:

algol [13] · Answer 1 · 2022-06-06T01:51:40+03:00

algol [13]3 years ago

6 0

Answer:

B

Step-by-step explanation:

Formula is

Interest=loan ×interest rate×time

Solve for the first choice

I=10,000×0.05×5=2500

Solve for the second choice

I=10,000×0.06×7=4200

The difference in the amount of interest

4,200−2,500=1700