Katie has a loan balance of $5,000 with a 15% APR. She will take 3 years to pay it off, making her monthly payments $201.39. How much is she paying in interest over the 3 years?

A.) $2,250

B.) $4,250

C.) $604.17

D.) $750

$2250

Step-by-step explanation:

First we calculate total payment made by her in 3 years time. This can be done by multiplying monthly payments by 36 months (3 years time). Then we deduct the same by the loan balance required to pay off. The difference of both is the interest paid over the three years. As done below

Total Payment = 201.39 x 36 = 7,250.04

Interest Paid = 7,250.04 - 5,000 = 2,250.04

Rounding off to whole number that is $2,250

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step-by-step explanation:

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step-by-step explanation:

just keep timing it by 4.