Xavier Martinez took out a $5,000 loan at 7.5% interest for reconstructing his patio. His monthly payment on the 12-month loan was $437.26. After 6 payments, the balance was $2,556.03. He paid off the loan with the next payment. What did he save by paying off the loan early?

A.) $51.55

B.) $15.98

C.) $67.53

D.) $42.74

Question

Rhett Ross

Mathematics

9 August, 19:47

Xavier Martinez took out a $5,000 loan at 7.5% interest for reconstructing his patio. His monthly payment on the 12-month loan was $437.26. After 6 payments, the balance was $2,556.03. He paid off the loan with the next payment. What did he save by paying off the loan early?

A.) $51.55

B.) $15.98

C.) $67.53

D.) $42.74

+3

Answers (1)

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Silas · Answer 1

Paying off the entire loan = 12 * 437.26 = 5,247.12

He paid 6 * 437.26 = 2,623.56

He then paid 2,556.03

2,623.56 plus = 2,556.03 = 5,179.59

5,247.12 minus 5,179.59 =

67.53 the amount of money he saved.