Interest and Total Payments on $10,000 Loan over Five Years
V
The bank would earn a profit of
v over
years if a customer was charged 15%
interest
A consumer would save
over the life of the
loan with a 5% interest rate rather than a 10% interest
rate
Interest
rate
Monthly
payment
Total paid
5%
$188.70
$11,322.00
10%
$212.50
$12.750.00
15%
$237.90
$14.274.00
18%
$253.90
$15,234.00