the difference in the amount of interest Stephanie would have to pay for each of these two loans is $1950 . Correct option D) .
Step-by-step explanation:
Here we have , Stephanie is taking out a loan in the amount of $15,000. Her choices for the loan are a 4-year loan at 3% simple interest and a 5-year loan at 5% simple interest. We need to find the difference in the amount of interest Stephanie would have to pay for each of these two loans . let's find out:
a 4-year loan at 3% simple interest :
⇒ [tex]4(\frac{15000(3)}{100})[/tex] { As loan is for 4 years we multiply by 4 }
⇒ [tex]4(150(3))[/tex]
⇒ $[tex]1800[/tex]
a 5-year loan at 5% simple interest :
⇒ [tex]5(\frac{15000(5)}{100})[/tex] { As loan is for 5 years we multiply by 5 }
⇒ [tex]5(150(5))[/tex]
⇒ $[tex]3750[/tex]
So , Difference = $3750 - $1800 = $1950
Therefore , the difference in the amount of interest Stephanie would have to pay for each of these two loans is $1950 . Correct option D) .
