et on our next eguar S645 you pay an additional $1,000 with y on your loan 7.4%

Question

et on our next eguar S645 you pay an additional $1,000 with y on your loan 7.4% our loan payments are S645 por month, and you have 36 months e payment (due in one month), how much will it reduce the amount of time left to pay off your loan? (Noto: Be careful not to round any intermediate stops loss 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 approximatelymonths. (Round to one decimal place.) ng toward your car oan. Your inte estra Y u have some 0x a cash this month and you are conside ng o

Explanation / Answer

Given that- Interest rate 7.40% Number of month left 36 Monthly payment $            645 Additional money $         1,000 Using financial calculator we have - Put in financial calculator - I=7.4%/12 0.62% PMT= $      645.00 FV= $               -   N= 36 Compute for PV= ($20,766.05) Present value of loan = 20,766.05 if we pay 1000 immediately left over present value of loan = 19,766.05 Number of month required to pay loan need to calculate using financial calculator with below input Put in financial calculator - I=7.4%/12 0.62% PMT= $      645.00 PV= $     (19,766) FV= 0 Compute for N=               34.1 month Hence, new time to pay off loan will be 34.1 month reduction in time required to pay off loan = 36-34.1 = 1.9 month

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