Ask Question
15 October, 11:57

Lillie Manson paid for tuition at a summer school with an installment loan of $3,600 at 9% interest for 12 months. Her monthly payment was $314.83. After 6 payments, the balance was $1,840.34. She paid off the loan with the next payment. What did she save by paying off the loan early?

+1
Answers (1)
  1. 15 October, 12:04
    0
    After 6 months, ammount left to pay = $1,840.34

    On the seventh month, he payed of the debt with the interest (for one month).

    Amount paid off at the seventh month = 1840.34 (1 + 0.09/12) = 1840.34 (1.0075) = 1854.14

    Amount to have paid in the remaining 6 months = 314.83 x 6 = 1888.98

    Amount saved = 1888.98 - 1854.14 = $34.84
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Lillie Manson paid for tuition at a summer school with an installment loan of $3,600 at 9% interest for 12 months. Her monthly payment was ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers