# Thread: Total Interest on the Loan?

1. ## Total Interest on the Loan?

E-Loan, an online lending service, recently offered 36-month auto loads at 7.56
compounded monthly to applicants with good credit rating. If you have a good
credit rating and can afford monthly payments of $350, how much can you borrow from E-Loan? What is the total interest you will pay for this loan? 2. Originally Posted by ndcruz E-Loan, an online lending service, recently offered 36-month auto loads at 7.56 compounded monthly to applicants with good credit rating. If you have a good credit rating and can afford monthly payments of$350, how much can you borrow
from E-Loan? What is the total interest you will pay for this loan?
I used this formula for calculating monthly car payments:

$MP=\frac{P(\frac{r}{12})}{1-\left(1+\frac{r}{12}\right)^{-m}}$

$350=\frac{P(\frac{.0756}{12})}{1-\left(1+\frac{.0756}{12}\right)^{-36}}$

And after solving this gigantic mess, I found the maximum principal P would be $11,241.81. To find the total interest you would pay for this loan, multiply$350 by 36 months and subtract that from \$11,241.81.