Determine the total amount of interest paid on this loan

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Reference no: EM131567821

1. Consider a car loan amount of $10,000 for a term of 5 years at 10% interest compounded monthly. Find the monthly payment, use it to find the total amount paid for this loan, and finally determine the total amount of interest paid on this loan.

a. $2,381.58

b. $2,748.23

c. $3,515.42

d. $3,576.73

2. Consider a 15-year mortgage at an interest rate of 9% compounded monthly. The amount to be mortgaged is $150,000. How much of the first month's payment is principal?

a. $405.66

b. $396.40

c. $383.27

d. $379.73

Reference no: EM131567821

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