Question

Dennis and Gail Schultz are looking over the repayment schedule for their $5,500 loan for lake house remodeling at 15% interest for 42 months with a monthly payment of $168.85. They note that the balance after payment 18 is $3,493.39, after 24 is $2,718.43, and after 30 is $1,883.50. How much would they save by paying off the loan earlv at payment (a) 19, (b) 25, or (c) 31?

Answer 1

c)31

Explanation:

The goal of this exercise is to determine the total savings by paying the debt early at

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)

a)

19

19th payments

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)

b)

25

25th payments and

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)

c)

31

31st payments.