Respuesta :
Answer: option D is the correct answer.
Step-by-step explanation:
The formula for determining simple interest is expressed as
I = PRT/100
Where
I represents interest paid on the loan.
P represents the principal or amount taken as loan
R represents interest rate
T represents the duration of the loan in years.
Considering Henry's loan,
P = 5000
R = 4.2
T = 4 years
I = (5000 × 4.2 × 4)/100 = $840
Considering Ingrid's loan,
P = 5000
R = 3.9
T = 6 years
I = (5000 × 3.9 × 6)/100 = $1170
The difference between the amounts of interest Henry and Ingrid paid for their loans is
1170 - 840 = $330
The difference between the amounts of interest Henry and Ingrid paid for their loans is $330.
Given that,
Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.
And Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.
We have to find,
The difference between the amounts of interest Henry and Ingrid paid for their loans.
According to the question,
Henry took out a 4-year loan for $5,000 and paid 4.2% annual simple interest.
Then,
[tex]Amount \ of\ interest = Principal \times rate \times time[/tex]
Where, Principal = $5000, rate = 4.2% = 0.042, and time = 4 years
Therefore,
[tex]Amount \ of\ interest = Principal \times rate \times time\\\\Amount \ of\ interest = 5000 \times 0.042 \times 4\\\\Amount \ of\ interest = $840[/tex]
The amount of interest of Henry is $840.
Ingrid took out a 6-year loan for $5,000 and paid 3.9% annual simple interest.
Where, Principal = $5000, rate = 3.9% = 0.039, and time = 6 years
Then,
[tex]Amount \ of\ interest = Principal \times rate \times time\\\\Amount \ of\ interest = 5000 \times 0.039 \times 6\\\\Amount \ of\ interest = $1170[/tex]
The amount of interest of Ingrid is $1170.
Therefore,
The difference between the amounts of interest Henry and Ingrid paid for their loans.
= $1170 - $840 = $330
Hence, The difference between the amounts of interest Henry and Ingrid paid for their loans is $330.
To know more about Interest click the link given below.
https://brainly.com/question/16185528
