homework help please

Question

Assume that you take out a $4000 loan for 21 months at 3.5% APR. How much total interest will you have paid at the end of the 21 months? (Round your answer to the nearest cent.) 

$ ?

Answer 1

It depends on the terms of the loan and whether you will pay it back monthly or in one lump sum at the end. Is the interest compounded daily, monthly, or yearly? Will you pay the interest monthly, or will the interest accrue until the end of the loan? Will you pay a portion of the principal each month, or wait to pay it all at the end? If you do pay principal and interest each month, will you make 21 equal payments or will the amount vary month by month?