Question

Why would paying an additional $100 every month, on top of the regular payment, towards one's car be beneficial?

Answer 1

No picture of the question? Well if your asking me than it will be 554 and then plus 100 equals 654

Answer 2

Making principal-only payments accelerates the payment of your loan and decreases the interest you pay over the life of the loan. For example, you can save almost $900 in interest by paying an additional principal-only payment of $100 a month on a 60-month loan for $20,000 with a 7% interest rate. You'll also payoff your car loan one year and one month faster with the extra $100 payment.

Explanation:

100% on edge 2021