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Thread: Find loan amount, amount saved

  1. #1

    Find loan amount, amount saved

    Sean purchased a new couch and love seat for his living room for $4500. He made a down payment of $1550 and financed the balance with a 24-month fixed-payment installment loan. Instead of making the eleventh payment of $144.17, he decides to pay off the loan.
    A) how much interest will sean save?
    B) what is the amount due to pay off the loan?

  2. #2
    Elite Member
    Join Date
    Apr 2005
    Location
    USA
    Posts
    8,226
    Do you have a formula for these? You should. It really isn't fair to assign such a problem without appropriate guidance.

    $4500 - $1550 = $2950 The Amount Financed

    Okay, what's the fixed installment? Is it $144.17?

    $144.17*24 = $3460 That's more than $2950. What is the excess?

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