Holly is taking out a loan in the

amount of $10,000, Her choices for

the loan are a 4-year loan at 4%

simple interest and a 6-year loan at

5% simple interest, What is the

difference in the amount of interest

Holly would have to pay for each of

these two loans?

$1,600

$3,000

$4,600

$1,400

D)

(8,12A)

Question

Mathematics

Guest

14 June, 14:23

Holly is taking out a loan in the

amount of $10,000, Her choices for

the loan are a 4-year loan at 4%

simple interest and a 6-year loan at

5% simple interest, What is the

difference in the amount of interest

Holly would have to pay for each of

these two loans?

$1,600

$3,000

$4,600

$1,400

D)

(8,12A)

+5

Answers (1)

Know the Answer?

Jasmin Armstrong · Answer 1

The answer is $1,400

Here is the work:

10,000 X 4/100 X 4 years = $1,600 Interest Holly has to pay on 4%, 4-year loan.

10,000 X 5/100 X 6 years = $3,000 Interest Holly has to pay on 5%, 6-year loan.

$3,000 - $1,600 = $1,400 Difference in interest between the two loan choices.

Holly is taking out a loan in theamount of $10,000, Her choices forthe loan are a 4-year loan at 4%simple interest and a 6-year loan at5% simple interest, What is thedifference in the amount of interestHolly would have to pay for each ofthese two loans?$1,600$3,000$4,600$1,400D)(8,12A)