Solution:
The formula for monthly payment is shown below
From the question:
[tex]\begin{gathered} p=\text{ \$14000} \\ r=6.5\text{ \%= 0.065} \\ n=72 \end{gathered}[/tex][tex]M=\frac{14000(\frac{0.065}{12})(1+\frac{0.065}{12})^{72}}{(1+\frac{0.065}{12})^{72}-1}[/tex][tex]\begin{gathered} M=\frac{1400(0.00541667)(1.475427)}{1.475427-1} \\ \\ M=\frac{111.88662}{0.475427}\text{ = 235.339} \\ M=\text{ \$}235.34 \end{gathered}[/tex]The monthly payment = $235.34
Total amount paid = $235.339 x 72 = $16944.424
Total interest Will paid over the life of the loan = $16944.424 - $14,000 = $2944.424
You are
Thus, Total interest Will paid over the life of the loan = $2944.42 (nearest cent)
