Question

Go back to the Standard Repayment plan in #1 above. Now pay an extra $100 per month (this gets put toward the principal),.

Print out the amortization schedule and on the back of the schedule answer these questions:
1.
Write down the facts of the loan: loan amount, interest rate, extra monthly payment, length of the loan
2.
What is the total principal, interest paid?
3.
What is the last monthly payment?
4
How many payments is this loan with the additional principal?
5
How much faster was this loan than the original in #1?
6.
How much money was saved by paying $100 extra toward principal each month?
7.
What is the point?

Answer 1

3000* (1+ 0.06) (that little 1 at the corner there <)

= $3,180

3,180 - 3000 = $180 first year

180/12 =$15 per month

The formula is

Principal (money borrowed/3000$) times/*/x (1+ rate (0.06) ) to the power of 1

Please correct me if i got it wrong i’m studying this in class too.

Step-by-step explanation: