Question 1194762
You take out a loan of $15,000 to purchase a car.

If your loan is for 3 years at a simple interest rate of 10.5%, find out how much interest and the total amount paid for the loan.
<pre>Total amount paid, or Future Value of the $14,000 loan, or FV = P(1 + TR) = 14,000(1 + 3 * .105) = <font color = red><font size = 4><b>$19,725.</font></font></b>

Of the $19,725 paid, $15,000 was the principal or loan amount, so interest paid on the loan = $19,725 - $15,000 = <font color = red><font size = 4><b>$4,725.</font></font></b></pre>