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!!!
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