How much will you save in interest by making extra payments

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Suppose you take out a 30 year mortgage for $ 175000 at 9% interest. The monthly payments on this loan are $ 1408.09.

If you pay an extra 10% per month on your mortgage, how soon will you pay off the loan?

New length in years =

How much will you save in interest by making the extra payments?

Saving =

If you put $ 1408.09 per month into an annuity earning 10.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?

Extra savings =

Reference no: EM13924474

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