Question 1042369
<font face="Times New Roman" size="+2">


This cannot be answered with the information given.  What are the payment terms (monthly, quarterly,...?). What is the compounding frequency?


If you meant that it is a $6000 loan at 3.5% that is repaid in 37 equal monthly installments with interest accruing on the unpaid balance each month, then you need to first calculate the amount of each monthly payment:


*[tex \LARGE \ \ \ \ \ \ \ \ \ \ P\ =\ \frac{r(PV)}{1\ -\ (1\ +\ r)^{-n}}]


Where *[tex \Large P] is the payment amount, *[tex \Large r] is the <i>monthly</i> interest rate expressed as a decimal fraction, *[tex \Large PV] is the initial loan amount, and *[tex \Large n] is the number of equal monthly payments to be made.  Get out your calculator.  Note: To find the monthly interest rate, divide the annual interest rate by 12.  Here is where the admonition about rounding comes into play.  You need to maintain at least 6 decimal place accuracy on this intermediate calculation in order to have the final answer come out correctly.


Once you know the payment amount, multiply that amount by 37, to get the total amount paid at the end of the loan.  Then subtract the initial loan amount from the total amount paid.  The difference is the interest paid.


John
*[tex \LARGE e^{i\pi}\ +\ 1\ =\ 0]
My calculator said it, I believe it, that settles it
<img src="http://c0rk.blogs.com/gr0undzer0/darwin-fish.jpg">
*[tex \Large \ \
*[tex \LARGE \ \ \ \ \ \ \ \ \ \  

</font>