Find loan amount, amount saved

patti72458

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Joined
May 7, 2006
Messages
26
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?
 

tkhunny

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Joined
Apr 12, 2005
Messages
11,317
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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