Determine the amount of interest you will pay throughout the term of the loan and the final cost of the item when the loan is paid in full.

Before taking out a loan, it is important to know the repayment terms and how your interest rate and the time of the loan affect the total loan balance. (

For this Discussion, you examine the effect of simple and compound interest, as well as time on the principal balance of a loan. You also explore how these variables affect loan repayment.

Describe the item you are taking a loan out for and the purchase price.
Include your chosen interest rate and amount of time for your loan.
Determine the amount of interest you will pay throughout the term of the loan and the final cost of the item when the loan is paid in full. Note: Assume your bank uses the simple interest formula: Interest = Principal * Rate * Time.
Show the work needed to find the amount of interest and total cost.
Determine the monthly payment for this loan.