Jamal has a 60month fix loan with a monthly payment of 33750

Jamal has a 60-month fix loan with a monthly payment of $337.50. The amount he borrowed was 13,500. Instead of making his 38th payment, Jamal is paying the balance on the loan. how much interest will Jamal save? A.$ 933.20 B.$ 839.88 C.$ 880.93 D.$ 1073.18

Solution

he already paid 37th payment

so the money he has in loan is =$12487.5

the amount borrowed = $13500

he has to pay now =13500 - $12487

= $1012.5

so he will save $1073 (D)