Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the end of 1 0 2 0 1 8 , Mike took out a 3 0 - year loan of $ 8 0 0

At the end of 102018, Mike took out a 30- year loan of $800,000 with monthly payment. The loan has an annual rate of 7%. If, at the end of 52024, instantly after the monthly payment, she prepaid $50,000. How much interest she can save on 72024 compared to if she did not prepay the $50,000? Prepayment only reduces the loan balance on a loan but does not affect the monthly payment amount.
$268.67
$2993
$239
$180.78
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions