how much money will a borrower using loan 2 p...
how much money will a borrower using loan 2 pay in interest over the life of the loan? loan 1 loan 2 principal $4000.00 $4000.00 monthly payment $175.00 $120.00 duration 24 months 36 months
Answer
# Explanation:
## Step1: Calculate total payments
The monthly - payment of Loan 2 is $120 and the duration is 36 months. The total amount paid is the product of the monthly payment and the number of months.
$120\times36 = 4320$
## Step2: Calculate interest paid
The principal of Loan 2 is $4000. The interest paid is the total amount paid minus the principal.
$4320 - 4000=320$
# Answer:
320