A man bought a secondhand car at a price of US$25000 using a loan obtained from a non-bank financial institution authority registered company. He was offered the loan of US$25000 at a simple interest rate of 25% and the loan is to be repaid over 3 years.
1. how much interest would the man have paid at the end of 3years?
2. If the man negotiated an interest reduction from 25% to 20%, how much would he have to pay at the end of loan term
3.how much interest would he have saved from the reduction of the interest rates
4. Explain any two factors that determine the amount of interest received by lenders