NEED HELP SETTING IT UP.
For a loan of $100,000 at a rate of 6% for fifteen years, the payment is about $843 a month. For the same loan amount, at an interest rate of 7.5%, you must increase the life of the loan to keep the same payment. The term must extend over 18 years instead of 15 years. With these thoughts in mind, how would paying off a loan early affect the amount of interest paid for the loan?

Question

NEED HELP SETTING IT UP.
For a loan of $100,000 at a rate of 6% for fifteen years, the payment is about $843 a month. For the same loan amount, at an interest rate of 7.5%, you must increase the life of the loan to keep the same payment. The term must extend over 18 years instead of 15 years. With these thoughts in mind, how would paying off a loan early affect the amount of interest paid for the loan?

ganeshie8 · Answer

trick question : How much interest do you pay if you don't take the loan at all ?

anonymous · Answer

uhm 0 ? :p

ganeshie8 · Answer

Yes! can we say the interest paid will be less if we pay off the loan early ?

anonymous · Answer

yes

ganeshie8 · Answer

just explain that in few sentences and finish it off

anonymous · Answer

thanks