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|$4600.00|$4600.00|\n|monthly payment|$138.00|$107.00|\n|duration|36 months|48 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|$4600.00|$4600.00|\n|monthly payment|$138.00|$107.00|\n|duration|36 months|48 months|

Answer

Explanation:

Step1: Calculate total payments

Multiply monthly payment by duration. $138\times36$

Step2: Calculate total interest

Subtract principal from total payments. $(138\times36)- 4600$

Answer:

$138\times36 - 4600=4968 - 4600 = 368$ So the borrower using Loan 1 will pay $$368$ in interest over the life of the loan.