Question

What is the difference in the amount of interest paid for a 35 month term and the interest paid for a 60 month term

The interest is 12%

Answer 1

The amount will vary depending on the period

Step-by-step explanation:

Let's say you borrowed an amount of 400 dollars at a compound rate of 12% per annum.

let's assume the loan term is 35 months, the interest is:

400(1+0.12/12)^35-400=166.64

and if we increase timing to 60 months that will be

400(1+0.12/12)^60-400=326.68