Question

On a $3000 loan, Bank A offers repayment terms of 6% simple interest for a 4-year term. Bank B offers 6% simple interest for a 5-year term. How much more interest will Bank B earn on the $3000 loan with the longer loan term?

Answer 1

@haleyelizabeth2017 @Mehek14

Answer 2

we need to apply the simple interest formula

Answer 3

hw?

Answer 4

\[I = P*R*T \]

where I = how much the money grows with interest.
P = principle starting amount of money
R is the interest rate the bank offers.
T is the amount of time in years.

Answer 5

now we've got two banks that are offering the same rate of 6% but for different amounts of time.

Answer 6

\[Bank~A = (\frac{ 6 }{ 100 })*(4~yr)(3,000) \]

\[Bank~B = (\frac{ 6 }{ 100 })*(5~yr)(3,000) \]

You would take the difference of the two to figure out how much more interest is gained by bank B.

Answer 7

i think answer is 180

Answer 8

yep you are right :)

Answer 9

thx