how much money will a borrower using loan 1 pay in interest over the life of the loan?\n| |loan 1|loan…

how much money will a borrower using loan 1 pay in interest over the life of the loan?\n| |loan 1|loan 2|\n|--|--|--|\n|principal|$3000.00|$3000.00|\n|monthly payment|$70.00|$90.00|\n|duration|48 months|36 months|

how much money will a borrower using loan 1 pay in interest over the life of the loan?\n| |loan 1|loan 2|\n|--|--|--|\n|principal|$3000.00|$3000.00|\n|monthly payment|$70.00|$90.00|\n|duration|48 months|36 months|

Answer

Explanation:

Step1: Calculate total payments

The monthly payment of Loan 1 is $70 and the duration is 48 months. So the total amount paid is the product of monthly - payment and number of months. $70\times48 = 3360$

Step2: Calculate interest paid

The principal of Loan 1 is $3000. The interest paid is the total amount paid minus the principal. $3360 - 3000=360$

Answer:

$360$