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What is the amount of interest that Sam will pay on his $5000 loan if his monthly payment for three years is 150

1 Answer

3 votes

Answer:

Amount of interest pay by Sam = $400

Explanation:

Given:

Amount of loan taken by Sam = $5,000

Monthly payment made by Sam = $150

Number of year payment made by Sam = 3 Year

Find:

Amount of interest pay by Sam

Computation:

Total amount pay by Sam in 3 year = Monthly payment made by Sam x 12 x 3

Total amount pay by Sam in 3 year = 150 x 12 x 3

Total amount pay by Sam in 3 year = $5,400

Amount of interest pay by Sam = Total amount pay by Sam in 3 year - Amount of loan taken by Sam

Amount of interest pay by Sam = $5,400 - $5,000

Amount of interest pay by Sam = $400

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