1. **State the problem:** Jessica and Max each take out a loan of 18500 for three years. Jessica's interest rate is 8.625%, and Max's rate is 2 points lower, so 8.625% - 2% = 6.625%. We need to find the difference in simple interest between their loans. 2. **Formula for simple interest:** $$I = P \times r \times t$$ where $I$ is interest, $P$ is principal, $r$ is annual interest rate (as a decimal), and $t$ is time in years. 3. **Calculate Jessica's interest:** $$I_J = 18500 \times 0.08625 \times 3 = 18500 \times 0.25875 = 4788.75$$ 4. **Calculate Max's interest:** $$I_M = 18500 \times 0.06625 \times 3 = 18500 \times 0.19875 = 3678.75$$ 5. **Find the difference:** $$\text{Difference} = I_J - I_M = 4788.75 - 3678.75 = 1110$$ **Final answer:** The difference between the two simple interest accounts is 1110.