Solve for PV of loan before and after extra payment Present value of the cash flow stream Present value of loan after extra pmt Note: Reduce loan balance by the PV of the $1000 payment next month Determine number of periods remaining to pay off the loan Time remaining to loan payoff after extra payment (mos) PVAnnuity=Cr1(1(1+r)N1) (7 points) You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7%, your loan payments are $600 per month, and you have 36 months left on your loan. If you pay an additional $1,000 with your next regular $600 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? Hint: The $1,000 is being paid one month from now, not today. If you choose to subtract anything from your loan value today, it must be the PV of the $1,000 today (lower than $1,000)