Answer: The cost of loan for Mr. Moh = $6083.48,
Mr.Moh paid $2083.48 interest at the end of the 3 years.
Step-by-step explanation:
Cost of a loan includes original amount and the interest charged on it.
Formula to calculate accumulated amount after t years:
[tex]A=P(1+r)^t[/tex], where P= original amount, r=rate of interest.
Here, P= $4000 , r= 15%= 0.15, t = 3 years
[tex]A=4000(1+0.15)^3\\\\=4000(1.15)^3\\\\=4000\times1.52087\approx6083.48[/tex]
Cost of loan = $6083.48
The cost of loan for Mr. Moh = $6083.48,
Interest = A-P = $(6083.48-4000)= $ 2083.48
Hence, Mr.Moh paid $2083.48 interest at the end of the 3 years
