Question

Ashley is taking out a loan in the amount of $12,000. Her choices for the loan are a 4-year loan at 7.00% annual simple interest and a 5-year loan at 8.00% annual simple interest. What is the difference in the amount of interest Ashley would have to pay for these two loans?

Answer 1

Answer:

12000×4×7

100

loan for 4 year at the rate of 7% the simple intrest is 3360.

12000×5×8

100

loan for 5 year at the rate of 8% the simple intrest is 4800.