Respuesta :
Answer:
She would save $17,340.10.
Step-by-step explanation:
We will use formula : [tex]A=P(1+r)^t[/tex]
A = Future amount
P = Principal amount
r = [tex]\frac{APR}{12}[/tex] = [tex]\frac{0.033}{12}[/tex] = 0.00275
t = 20 years ( 240 months )
[tex]A=50,000(1+0.00275)^{240}[/tex]
= 50,000(1.00275)²⁴⁰
= 50,000 × 1.93304052
= $96,652.026 ≈ $96,652.03
If she paid it off 6 years early ( after 14 years ).
[tex]A=50,000(1+0.00275)^{168}[/tex]
[tex]=50,000(1.00275)^{168}[/tex]
= 50,000 × 1.58623917
= 79,311.9585 ≈ $79,311.96
She would save by paying off 6 years early = 96,652.03 - 79,311.96
= $17,340.07 ≈ 17,340.10
She would save $17,340.10.
