Jocelyn Denot took out a $4,800 installment loan at 17% for 12 months for remodeling expenses. Her monthly payments were $437.78. After five payments, the balance due was $2,897.95. If Jocelyn pays off the loan with the sixth payment, how much will she save? (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.)

Question

Jocelyn Denot took out a $4,800 installment loan at 17% for 12 months for remodeling expenses. Her monthly payments were $437.78. After five payments, the balance due was $2,897.95. If Jocelyn pays off the loan with the sixth payment, how much will she save?  (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.)