Question on Simple Ordinary Annuity

[fonixbob]

Can someone please help me on the following question:

Suppose a loan is modeled by a simple ordinary annuity. The total cost of the loan is the principal plus the total amount of interest paid over the loan.

Show that the total cost is the total number of payments over times the monthly payment.

 

[Denis]

Can someone please help me on the following question:
Suppose a loan is modeled by a simple ordinary annuity. The total cost of the loan is the principal plus the total amount of interest paid over the loan.
Show that the total cost is the total number of payments over times the monthly payment.

Huh?
Cost = total of payments less amount borrowed.
Example:
$1000 borrowed, paid back with 12 payments of $110;
cost = 12 * 110 - 1000 = 1320 - 1000 = 320