To calculate the total interest paid over the life of the loan for Loan 2, we first need to find the total amount paid over the life of the loan and then subtract the principal amount.
Total amount paid over the life of Loan 2 = Monthly payment * Duration
Total amount paid over the life of Loan 2 = $60.00 * 36 months
Total amount paid over the life of Loan 2 = $2160.00
Now, to find the total interest paid:
Total interest paid = Total amount paid - Principal
Total interest paid = $2160.00 - $2000.00
Total interest paid = $160.00
Therefore, a borrower using Loan 2 will pay $160.00 in interest over the life of the loan.
So, the correct answer is:
A. $160.00
