Question

Doreen Short was looking over the repayment schedule for a loan of $40,000. 00 at 9% for 4 years with a monthly payment of $995. 40.



Find the final payment and amount saved if :



A. ) The loan is paid off with payment 30 with a previous balance of $17,565. 74



B. ) The loan is paid off with payment 36 with a loan balance of $12,285. 66



C. ) The loan is paid off with payment 48 with a previous balance of $988. 9

Answer 1

Doreen Short was looking over the repayment schedule for a loan of $40,000, the final payment and amount saved for the options are mathematically given as

1. F=17697.5 , AS=1215.12
2. F=12377.80, AS=$562.40
3. F=$995.40, Amount saved is zero

What is the loan is paid off with payment 30 with a previous balance of $17,565. 74?

Generally, the equation for the interest  is mathematically given as

I= balance*percentage/12

Therefore

I=17,565. 74*0.09/12

I=131.7

The final payment

F=I+B

F=131.7+17,565. 74

F=17697.5

Amount saved

AS=19*995.40 -17697.5

AS=1215.12

b) For the loan is paid off with payment 36 with a loan balance of $12,285. 66

I= balance*percentage/12

Therefore

I= 12,285. 66*0.09/12I92.142

I=92.142

Final payment

F=I+B

F=92.142+12377.80

F=12377.80

Amount saved

AS=13*995.40-12377.80

AS=$562.40

c) For the loan is paid off with payment 48 with a previous balance of $988. 9

I= balance*percentage/12

I= 988.09*0.09/12

I=7.41

Therefore

F=7.41* +988.09

F=$995.40

The Amount saved is zero

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