how much money will a borrower using loan 1 pay in interest over the life of the loan? loan 1 loan 2…
how much money will a borrower using loan 1 pay in interest over the life of the loan? loan 1 loan 2 principal $4600.00 $4600.00 monthly payment $138.00 $107.00 duration 36 months 48 months
Answer
Explanation:
Step1: Calculate total payments
The monthly - payment of Loan 1 is $138.00 and the duration is 36 months. So the total amount paid is the product of the monthly payment and the number of months. $138\times36 = 4968$
Step2: Calculate interest paid
The principal of Loan 1 is $4600. The interest paid is the total amount paid minus the principal. $4968 - 4600=368$
Answer:
$368$