SOLUTION: Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at 10% for 12 months. Her monthly payments are $263.75. After five payments, the balance due was

Algebra ->  Finance -> SOLUTION: Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at 10% for 12 months. Her monthly payments are $263.75. After five payments, the balance due was      Log On


   

Question 1083066: Chloe Closson paid for her vacation to the mountains with a $3,000 installment loan at 10% for 12 months. Her monthly payments are $263.75. After five payments, the balance due was $1,786.20. If Chloe pays off the loan with the sixth payment, how much will she save? Round up to the nearest cent.

(Hint: First calculate the payoff: Find the interest on the balance due and add it to the balance due. Add the amount of the first five payments to the payoff in month 6. Compare this total to the monthly payment multiplied by 12.)
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Just do the arithmetic indicated in the hint. We can help you with the math, but we aren't going to just do the arithmetic for you.

John

My calculator said it, I believe it, that settles it