The decrease in the total interest paid is 17.37%
Using the parameters given for our Calculation;
- No point Interest = $451860
- Three points interest = $373380
The percentage decrease in interest paid can be calculated thus;
- (Difference in interest paid / No point interest paid ) × 100%
Now we have ;
[(451860 - 373380) / 451860] × 100%
= 0.17368 × 100%
= 17.37%
Therefore, the decrease in interest is by 17.37%