Answer to Activity 4

The monthly payments over four years ($155.82) looks good in contrast to those is two ($266.99), don't they? But look at the totals:

Two years: 24*266.99=   $6407.76

Four years: 48*155.82=  $7479.36

Subtract the large amount from the smaller amount: $1,071.60

Those smaller monthly payments would cost more than a thousand dollars at the end! That is the difference in interest paid for four years instead of two years. Pay off your loans as soon as possible!!!

Back to Main Page

© Unlimited Learning, Cortez, CO 2004
Permission granted to use our materials for educational purposed only, as long as credit is given to the source.