Answer:
The correct answer is $110.
Explanation:
According to the scenario, the given data are as follows:
loan amount = $10,000
Before interest = 8.4%
After interest = 7.3%
So, we can calculate the amount we save in interest can be calculated by using following formula:
Amount of savings in interest = loan amount × difference in interest rate
= $10,000 × ( 8.4% - 7.3% )
= $10,000 × 1.1%
= $10,000 × 0.011
= $110
Hence, the amount we save in interest this year is $110.
