Isabella borrowed $15,800 at 8%p.a. flat interest she repays the loan over 4 years in equal monthly payments.
how much interest does she pay over 4 years?
To find the interest she pays over 4 years, we first need to find the annual interest, then multiply it by 4.
Interest per year = Principal × Interest rate
Interest per year = $15,800 × 8% = $15,800 × 0.08 = $1,264
Interest over 4 years = Interest per year × 4 years
Interest over 4 years = $1,264 × 4 = $5,056
Isabella pays a total of $5,056 in interest over 4 years.