FormuladrillTotal interest on a loan
An Excel formula exercise from Formuladrill. Solve it with a formula bar on a live sheet in your browser, and it is checked the moment you submit.
The task
A loan is repaid monthly over the years in B3 at the yearly rate in B2. Calculate the total interest paid over the life of the loan, as a positive number, in B4.
What this exercise teaches
Total interest grows with the term even when the monthly payment falls, a point lenders and borrowers both watch.
A hint if you get stuck
Total paid is the monthly payment times the number of months. Interest is what is left after taking off the loan amount.
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