Question

Travis took out a six-year loan with a principal of $15,000. He made monthly payments of $225 for the entire period, at which point the loan was paid off. How much did Travis pay in interest?

a.
$1,200
b.
$1,350
c.
$800
d.
$0

Answer 1

A) $1200

$15000principal - ($225 monthly pmt * (6 years * 12 months a year)

=$15000-($225)(72)
=$15000-$16200
=-$1200 was paid in interest

Answer 2

$225 x 6yrs x 12months - $15,000 = a