Question

how much money will a borrower using loan 1 pay in interest over the life of the loan?
principal loan 1 $5000.00 loan 2 $5000.00
monthly payment loan 1 $148.00 loan 2 $113.00
duration loan 1 36 months loan 2 48 months

Explanation:

Step1: Calculate total amount paid

Total amount paid = Monthly Payment × Duration. For Loan 1, Monthly Payment is $148.00 and Duration is 36 months. So, total amount paid = \(148\times36\) = \(5328\) dollars.

Step2: Calculate interest paid

Interest paid = Total amount paid - Principal. Principal for Loan 1 is $5000.00. So, interest paid = \(5328 - 5000\) = \(328\) dollars.

Answer:

\(328\)