Answer:
financing 62,400 dollars
Monthly Payment $ 465.48
Total Interest 21,386.4
Rounding to nearest $ 100
Additional $$ 34.52
We save up to 16 payments and $2,136.4 in interest.
By-weekly payment $232.60
Total Interest saved $ 194.4
Explanation:
78,000 less 20% down-payment: 62,400
Monthly Payment
PV $62,400.00
time 180
rate 0.0034375
C $ 465.484
Total Interest
quota times time less principal
$ 465.48 x 180 - 62,400 = 21,386.4
$ 500 - $ 465.48 = $ 34.52
C $500.00
time n
rate 0.0034375
PV $62,400.0000
We now use logaritmics properties to solve for n
-163.2956066
180 - 164 = 16 payments
Total Interst 500 x 163.30 - 62,400 = 19,250
Interest savings 21,386.4 - 19,250 = 2,136.4
If payment are bi-weekly:
then payments will be:
PV $62,400.00
time 360
rate 0.00171875
C $ 232.598
And total Interest:
232.2 x 360 - 62,400 = 21,192
Difference 21,386.4 - 21,192 = $ 194.4
