Change the interest rate to 3.5% and also make this a variable rate with 7 years fixed interest. Variable rate ARM loans usually have lower interest rates, but after 7 years assume the interest rate goes up by .25% Task 3 - If you pay an extra $300 a month and pay $20,000 additional payment on the 85th month (or right after 7 years) .. a) how much interest will you save, b) what date will the entire loan get paid , c) how much taxes will you save, d) what is the loan balance on year 12 ? e) how much was the total payment of the entire loan, f) how much was the total interest payment