SOLUTION: Loan term: 24, 36 Annual interest rates: 8.5% Monthly payment: 24 months: 412.20 36 months: 287.25 How much Less total interest does Juan pay on the 24-month loan than on the

Question 1099034: Loan term: 24, 36
Annual interest rates: 8.5%
Monthly payment: 24 months: 412.20
36 months: 287.25
How much Less total interest does Juan pay on the 24-month loan than on the 36-month loan
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=412.20*(1-(1+.085/12)^-24 divided by (.085/12)
=$9068.17; do the calculations by starting with .085/12, adding it to 1, raising it to the -24 power subtracting that from 1, multiplying by 412.20 and dividing by (.085/12), rounding at the end.
24*$412.20=$9892.80, so interest is $824.63
====================
for 36 change the exponent to -36
=$9099.54
36*$287.25=$10341. Interest is $1241.46
Answer is he pays $416.83 less interest
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