Early Appliance Payoff

Question

Marie relaxed her washer and dryer with a new set with a purchase price of $1450. She paid $150 down and financed the remainder over 2 years at 5.5% APR. Instead of making her 12th payment she wants to pay off the loan. What is..

a. Her monthly Payment

b. The amount of interest that Marie will save by paying off the loan early?

c. The total amount due to pay off the loan?

Answer 1

a. Her monthly Payment = $57.32

b. The amount of interest that Marie will save by paying off the loan early? = $14.19

c. The total amount due to pay off the loan? = $721.85

Payment Every Month  $57.32

Total of 24 Payments  $1,375.78

Total Interest  $75.78