Two customers took out bank loans.

• Mary took out a 4-year loan for $10,000 and paid 6.50% interest compounded annually
• Kyle took out a 6-year loan for $10,000 and paid 4.50% interest compounded annually

What is the difference between the amounts of interest Mary and Kyle paid for their loans?
A) $123.87
B) $157.94
C) $212.30
D) $287.69

302.08

Step-by-step explanation:

We will find out the interest payment for each person

The formula for the future value is as following:

FV = P where:

Marry:

P: $10,000

r= 6.50%  = 0.065

n = 1

t = 4

=> FV = 10000* = $12864.66

=> Interest amount is: $12864.66 - $10,000  = $2864.66

Kyle :

P: $10,000

r= 4.50%  = 0.045

n = 1

t = 6

=> FV = = 10000* = $13022.6

=> Interest amount is: $13022.6 - $10,000  = $3022.6

the difference between the amounts of interest Mary and Kyle paid for their loans: $3022.6  -  $2864.66  =  $157.94

i believe the answer is d.

hope it you! : d