Carmine took out a 28-year loan for $151,000 at an APR of 9.9%, compounded monthly, while Richie took out a 28-year loan for $116,000 at an APR of 9.9%, compounded monthly. Who would save more by paying off his loan 17 years early?
Carmine would save more money by paying off her loan 17 years earlier than Richie would save.
Both persons have the same initial term (28 year) and rate (9.9%) which is compounded monthly.
But cutting the term by 17 years Carmine would save significantly more on her higher principal loan
term rate principal interest
28 0.099 151,000 418572
10 0.099 151,000 149490 269082
28 0.099 116,000 321552
10 0.099 116,000 114840 206712
