Lillie Manson paid for tuition at a summer school with an installment loan of $3,600 at 9% interest for 12 months. Her monthly payment was $314.83. After 6 payments, the balance was $1,840.34. She paid off the loan with the next payment. What did she save by paying off the loan early?
(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 six payments to the payoff in month 7. Compare this total to the monthly payment multiplied by 12.)
(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 six payments to the payoff in month 7. Compare this total to the monthly payment multiplied by 12.)
