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?
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?