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Mumz [18]
3 years ago
14

Lillie Manson paid for tuition at a summer school with an installment loan of $3,600 at 9% interest for 12 months. Her monthly p

ayment 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?
Mathematics
1 answer:
gizmo_the_mogwai [7]3 years ago
7 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
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