For a $5,000, three-year, 6% loan with monthly payments, how much will you pay in interest over the life of the loan (rounded to the nearest dollar)?

Question

Quizplus · Accepted Answer

The correct answer is A because the total interest paid over the life of the loan is $476. This can be calculated using the formula: Total interest = Principal x Interest rate x Loan term. In this case, the principal is $5,000, the interest rate is 6%, and the loan term is 3 years. So, the total interest paid is $5,000 x 0.06 x 3 = $476.

For a $5,000, Three-Year, 6% Loan with Monthly Payments, How