Question

You purchase a car using a 20,000 loan with a 5% interest rate suppose you pay the loan off after 4 years how much interest do you pay on your loan suppose you pay the loan off after 2 years how much interest do you save by paying the loan off sooner

Answer 1

In 4 years you pay interest of 4000 and if you finish pay the loan in two years you pay only 2000