Answer:
Total interest saved = $ 774.9
Explanation:
Formula for total interest saved:
Total interest save = total interest in one month + Total interest at 36th month
Calculating total interest in one month:
As Enrique has a 60-month fixed installment loan, with a monthly payment of $77.86 so
1st payment in one month = 60 × 77.86
1st payment in one month = $4,671.6
As the amount he borrowed was $3500.
Therefore
Total interest = 4,671.6 - 3,500
Total interest = $1,171.6
Calculating total interest at 36th month:
Total interest at 36th month = ( 60 - 35 )× 77.86
Total interest at 36th month = 1,946.5
Therefore by putting the values in the above formula, we get
Total interest saved = $1,946.5- $1,1716
Total interest saved = $ 774.9
