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

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

anonymous · Answer

someone help me please!

amistre64 · Answer

how do we calculate total interest paid on a loan?

amistre64 · Answer

or, how would you describe what we pay for, when we buy a loan .... what are we paying off?

anonymous · Answer

@amistre64  sorry i was afk. so what are we doing?

amistre64 · Answer

ideally, the total cost of a loan, is the loan amount, and the interest

total cost is also just the total amount of money spent on it (sum of all payments)

total payments = loan + interest
----------------------------

subtract the loan amount and we get:

total payments - loan = interest
---------------------------

what is the interest paid for both people?

anonymous · Answer

Oh @amistre64  i gave you a medal but i dont need help on this anymore. thanks though!

anonymous · Answer

sorry for wasting your time

amistre64 · Answer

ok, good luck all the same :)