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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 :

musiclover10045

Simple interest formula: A= P(1+Ryan)

A = 12000(1+ 0.07x4) = 15,360.00

Amount of interest = 15360-12000= 3,360.00

A= 12000(1+0.08x5) = 16,800.00

Interest = 16,800-12,000 = 4,800.00

Difference in interest = 4800 - 3360 = $1,440.00

Answer:

1440

Step-by-step explanation:

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