Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.4%, your loan payments
You have some extra cash this month and you are considering putting it toward your car loan. Your interest rate is 7.4%, your loan payments are $601 per month, and you have 3 months left on your loan. If you pay an additional $1,200 with your next regular $601 payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Note: Be careful not to round any intermediate steps less than 6 decimal places.) The new time left to pay off your loan will be months. (Round to one decimal place.) Thus, you reduce the amount of time remaining on the loan by approximately months. (Round to one decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started