Posted by
**anthony** on
.

The cost of a new car is $16,000, which can be financed by

paying $3000 down $300 per month for 60 months.

Use the actuarial method to find the unpaid interest.

Instead of making the thirty-sixth payment, the borrower

decides to pay the remaining balance and terminate the loan

for the car.

How much interest is saved by repaying the loan early?