Change Janets Schedule In Question 5 Above, You Calculated What The Schedule Would Look Like If Janet Had Made One $285.05 Payment In January 2022. You Did It By Hand, But The Bankrate Calculator Has A

Change Janets Schedule

In question 5 above, you calculated what the schedule would look like if Janet had made one $285.05 payment in January 2022. You did it by hand, but the Bankrate calculator has a feature that allows you to adjust the entire schedule.

Using the Bankrate.com loan calculator, enter in the original loan amount, loan term, and interest rate.

Then, click on Calculate to get the monthly loan payment of $185.05.

Click Show Amortization Schedule and scroll down to the table. Make sure that the Start Date of the payment in the table is 12/01/2020.

Click on ADD EXTRA PAYMENTS under the blue Calculate button. Add an extra one-time payment of $100 in January 2022 and click the blue button APPLY for EXTRA PAYMENTS.

Now, scroll down to January 2022 in the amortization table. You should see that there is now a one-time payment of $285.05 for that month.

1. How did the extra, one-time payment of $100 affect the total interest Janet pays on the loan?
2. What was the impact on the number of months it will take Janet to pay off her loan?
3. This new calculation has Janet curious -- if shed been making $285.05 payments for the entire duration of the loan*, what would be the impact on the total interest Janet would have paid?
4. what would be the impact on the number of months to pay off the loan?
5. Reset Janets loan back to $3500, 24% interest, but pretend she decided from the start that her pay-off goal was 4 years instead of 2. What is Janets new monthly payment?
6. Look at the very first payment month. What do you notice about the principal and the interest?
7. Explain how your answer in part c created the change in interest you noticed in part b.
8. What would be the benefit of taking a longer time to pay back your loan (ex: 4 years instead of 2)? I answered some of the questions but I'm still confused and need help and explaining .