You have a $580,000 loan with a repayment period of 30 years and 6% yearly interest compounded monthly. Your monthly payment is $3477.39.

Assuming you make all of your payments on schedule, by the end of the repayment period, how much will you have paid back in total (i.e. what is the total future value of the payments)?

How much of the total amount paid over the life of the loan is interest?

You are considering accelerating the repayment of your loan by making a $1738.7 payment every two weeks instead of a monthly payment. You checked with the bank, and they said that interperiod interest will not be considered for your loan. You expect that this approach will save you some money on interest and help you pay off your loan sooner than 30 years.

With a $1738.7 payment every two weeks (26 times per year), when will your loan be paid off?

With a $1738.7 payment every two weeks (26 times per year), how much will you have paid back in total?

How much money will you save by paying half a payment every two weeks versus a full payment every month?