Question

A recent college graduate buys a new car by borrowing $22,000 at 8.4%, compounded monthly, for 4 years. She decides to pay $552 instead of the monthly payment required by the loan.

(a) What is the monthly payment required by the loan? (Round your answer to the nearest cent.)
$  

How much extra did she pay per month? (Round your answer to the nearest cent.)
$  

(b) How many $552 payments will she make to pay off the loan? (Round your answer up to the next whole number.)
payments

(c) How much will she save by paying $552 per month rather than the required payment? (Round your answer to the nearest cent.)
$

Answer 1

L=22000

r=8.4% = 0.084

n=12 for monthly compound

t=4 years

................monthly payment  

.

.

.

.

but she decided to pay 552

so extra pay is

............... extra pay  

.

.

.

when payment is 552 then find the time to payoff the loan

L=22000

PMT=552

r=8.4% = 0.084

n=12 for monthly compound

t=?

years

so the number of payments are

......................payments  

.

.

.

saving money is

.

here last answer may vary because here we have to take round off payment 47, but the actual number of payment is 46.8

so the actual save amount is 94.74