how much interest is being paid if the loan is $8000, with an interest rate of 8% every 3 years
how much interest is being paid if the loan is $8000, with an interest rate of 8% every 3 years
Your question isn't very clear. If you don't pay any principal then it's very simple:
$8,000 X .08=$640 per year,
$640 X 3=$1,920 total interest for three years.
However, when you have a bank loan like this one, you are required to pay monthly payments, which include both principal and interest. So, this loan wold have monthly payments of $250.69, assuming the 8% interest rate is compounded monthly. So, over three year period you would pay $250.69 X 36 months=$9,024.84, principal plus interest. So, $9024.84 - $8,000=$1,024.84 is the interest.
