Answer:
See below ↓↓
Explanation:
Important facts given [needed to solve]
- Time period = 3 years
- Loan amount = $5000
- Interest rate = 8% (semi-annually - twice a year)
- Monthly payment = $156.68
Solving :
- Total amount to be repaid = Monthly payment x 3 years
- = Monthly payment x 3 x 12 months
- = $156.68 x 36
- = $5640.48 (a)
Interest paid
- Total amount repaid - Initial loan amount
- = 5640.48 - 5000
- = $640.48 (b)