Question

Two customers took out loans from a bank.​

Jarrod took out a 5-year loan for $4,000 and paid 3.2% annual simple interest. ​

Harold took out a 7-year loan for $4,000 and paid 3.9% annual simple interest. ​

What is the difference between the amount of interest Jarrod and Harold paid for their loans???
Responses
A $1092​$1092​
B $640$640
C $452$452
D $1732

Answer 1

[AI-generated answer — Bot GPT 3.5]

To find the amount of interest paid by each customer, we will use the formula for simple interest:

Interest = Principal x Rate x Time

For Jarrod:
Interest = $4,000 x 0.032 x 5 = $640

For Harold:
Interest = $4,000 x 0.039 x 7 = $1,092

To find the difference between the amount of interest paid by Jarrod and Harold, we subtract the interest paid by Jarrod from the interest paid by Harold:

$1,092 - $640 = $452

Therefore, the correct answer is C) $452.