Connor is taking out a loan in the amount of $10,000. His choices for the loan are a 4-year loan at 4% simple interest and a 6-year loan at 5% simple interest. What is the difference in the amount of interest Connor would have to pay for each of these two loans? $1,600
$3,000
$4,600
$1,400

 $3,000

Step-by-step explanation: Calculating exactly how much interest you'll pay on a debt can be tricky ... If you take out a $10,000 loan or buy a $10,000 car, your principal balance is an easy $10,000. ... This is different from a revolving account, such as a credit card, ... In your first year, you'll be paying $400 in simple interest on that loan:.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%