Hello, who could help me with the question of algebra and give formulas on which it is considered. The question also posted on the homework help site and mathematical forums. Stuck specifically...
To purchase studio space, on April 3, 2025 a pianist takes out a 30-year loan of $120,000 at an annual interest rate of 11%. The first monthly payment is to be made on May 3, 2025; the final payment is scheduled to be made April 3, 2055. The monthly payment is $1,142.79 . [Note: If you use the table you’ll get that the monthly payment is $1,142.40, but the table produces an approximation. $1,142.79 is the precise payment.
a) Calculate the total interest charged over the course of the loan, assuming that nothing but the standard payment is made each month.
b) How much will she owe immediately after making the payment on June 3, 2025? (= the second payment) Round appropriately to the nearest penny.
c) Suppose that as part of that June 3, 2025 payment she pays an extra $300 as an overpayment. Calculate the dollar amount of interest which this saves in the future. Round your answer down to the nearest $10.
Here is an amortization schedule of your loan. All the info you need is there. Look at top right-hand corner and you will see total payments, total interest, monthly payment.....etc.
If you paid $300 off the principal after the 2nd payment, that means you will save interest on it for 358 months. So, $300 x 1.009166667^358 =$7,867.53 - $300 =$7,567.53 - this is the amount of interest you will have saved on a $300 payment over the remaining 358 months.