At the end of his schooling, John owes $15,200 in student loans.A repayment schedule is set up with a bank with the interest rate set at 8% c.m. over 10 years and monthly payments of $184.42.

a)For tax purposes, interest paid on student loans may be used as a tax deduction.How much interest is paid in the first year of the loan?

b)If John paid $200 per month instead of $184.42, calculate the final payment and interest savings.