Question Part

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Submissions Used

This problem is a complex financial problem that requires several skills, perhaps some from previous sections. Clark and Lana take a 30-year home mortgage of $129,000 at 7.1%, compounded monthly. They make their regular monthly payments for 5 years, then decide to pay $1000 per month.

(c) How many payments of $1000 will it take to pay off the loan? Give the answer correct to two decimal places. monthly payments

(d) Use your answer to part (c) to find how much interest they save by paying the loan this way. (Round your answer to the nearest cent.)