Final answer:
The Habers will save $4289.02 in interest and need to pay $2693.48 to balance off the loan.
Step-by-step explanation:
To calculate the amount they save in interest, we need to find the total interest paid over 24 installments and subtract the remaining balance. First, calculate the monthly payment using the loan amount and interest rate. The monthly payment will be $306.43. The 14 payments made equal to 14 * $306.43 = $4290.02. The remaining balance can be found by subtracting the payments made from the total loan amount: $6500 - $4290.02 = $2210.98. So, the amount they save in interest would be $6500 - $2210.98 = $4289.02.
To find the amount needed to pay off the balance of the loan, we need to add the remaining balance and the interest for the final 10 payments. We can calculate the interest for each payment by multiplying the remaining balance by the monthly interest rate (0.26/12). The interest for each payment is $2210.98 * (0.26/12) = $48.25. For the final 10 payments, the total interest would be 10 * $48.25 = $482.50. So, the amount needed to pay off the balance of the loan would be $2210.98 + $482.50 = $2693.48.