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:
, where P= original amount, r=rate of interest.
Here, P= $4000 , r= 15%= 0.15, t = 3 years
![A=4000(1+0.15)^3\\\\=4000(1.15)^3\\\\=4000\times1.52087\approx6083.48](https://tex.z-dn.net/?f=A%3D4000%281%2B0.15%29%5E3%5C%5C%5C%5C%3D4000%281.15%29%5E3%5C%5C%5C%5C%3D4000%5Ctimes1.52087%5Capprox6083.48)
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