how much money will a borrower using loan 2 pay in interest over the life of the loan?\n| |loan 1|loan…

how much money will a borrower using loan 2 pay in interest over the life of the loan?\n| |loan 1|loan 2|\n|--|--|--|\n|principal|$5800.00|$5800.00|\n|monthly payment|$254.00|$183.00|\n|duration|24 months|36 months|

how much money will a borrower using loan 2 pay in interest over the life of the loan?\n| |loan 1|loan 2|\n|--|--|--|\n|principal|$5800.00|$5800.00|\n|monthly payment|$254.00|$183.00|\n|duration|24 months|36 months|

Answer

Explanation:

Step1: Calculate total payments

The monthly - payment of Loan 2 is $183 and the duration is 36 months. The total amount paid is the product of the monthly payment and the number of months. $183\times36 = 6588$

Step2: Calculate interest

The principal of Loan 2 is $5800. The interest paid is the total amount paid minus the principal. $6588 - 5800=788$

Answer:

$788$