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)
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.
