Question

HELP

Kim Murphy has a car loan of $550 per month at 4% annual interest rate. About how much will she save if she pays the car off two years early?
A=M⎛⎝1−1(1+m)q⎞⎠m
A. $90.00
B. $180.00
C. $530.00
D. $1,100.00

Answer 1

550×((1−(1+0.04÷12)^(−12
×2))÷(0.04÷12))
=12,666

550×(24months)−12,666
=534 saved