Question

Mark and Jill each have a $6500 loan with a loan term of 4 years. The interest rate on Mark’s loan is 3% and the interest rate on Jill’s loan is 4%. Mark’s monthly payment is $144 and Jill’s monthly payment is $147. How much more in interest will Jill pay than Mark?

A.
$144

B.
$412

C.
$556

D.
$968

Answer 1

how do we determine the total cost of a loan?

Answer 2

I dont know

Answer 3

i need help with this

Answer 4

well, if we are paying for something, then the amount we pay is how much it costs right?

Answer 5

yes

Answer 6

then 4 years of monthly payments tells us how much each person pays; we can then use that to determine the interest

Answer 7

and theres two intrest rate 3% and 4%

Answer 8

the interest rates might be used in some other approach, but lets do this

our total cost is equal to , loan amount + interest paid

48M = 6500 + Mi
48 J = 6500 + Ji

Mi - Ji is the difference between them

Answer 9

(48M - 6500) -(48J - 6500) = difference in interest

48M - 6500 -48J + 6500

48M -48J

48(M -J)

and we know the monthly payments for M and J

Answer 10

so M and J are the monthy payments?

Answer 11

yep

Answer 12

so it would be 48(144-147)?

Answer 13

yep

Answer 14

it equals -144

Answer 15

48*3 seems fair yes

Answer 16

yeah

Answer 17

Thanks for the help did you want a medal

Answer 18

medal is up to you ... i just wanted to help solve the problem

Answer 19

good luck

Answer 20

thanks

Answer 21

was it correct?