Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. she is to pay it back in equal monthly payments over a 5-year period. how much total interest will be paid over the period of the loan? round to the nearest dollar.

First we need to find the monthly payments in order to find the interest

Use the formula of the present value of an annuity ordinary which is
Pv=pmt [(1-(1+r/k)^(-kn))÷(r/k)]
Pv present value 10000
PMT monthly payment?
R interest rate 0.11
K compounded monthly 12 because the payments to repay the loan are monthly
N time 5years
Solve the formula for PMT
PMT=pv÷[(1-(1+r/k)^(-kn))÷(r/k)]
PMT=10,000÷((1−(1+0.11÷12)^(
−12×5))÷(0.11÷12))
=217.42 per month

After that find total paid amount
5years=60 months
Total paid=217.42×60=13,045.2

Total interest
13,045.2−10,000=3,045.2. Answer

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