9514 1404 393
Answer:
- borrow: $21,056.60
- interest: $1,983.40
Step-by-step explanation:
The relation between the monthly payment (A) and the principal borrowed (P) is ...
A = P(r/12)/(1 -(1 +r/12)^-n)
where the annual interest rate is r and n is the number of monthly payments.
Then the principal P can be found as ...
P = $384(12/0.036)(1 -(1 +0.036/12)^-60) ≈ $21,056.60 . . . loan amount
The sum of payments is ...
$384 × 60 = $23,040.
The difference between the payments made and the loan principal amount is the interest paid:
$23,040.00 -21,056.60 = $1,983.40 . . . total interest
