Answer:
$38,645.7208
Step-by-step explanation:
Given that
Principal = $70,000
Time = 20 years
Rate = 2.2%
The calculation of the amount of saving is shown below:-
[tex]=P(1+r)^t[/tex]
A = Future amount
P = Principal amount
[tex]r = \frac{APR}{12}[/tex]
[tex]r = \frac{0.022}{12}[/tex]
0.001833333
t = 20 years which is equals to 240 months
[tex]A=\$70,000\times (1+0.001833333)^{240}[/tex]
[tex]A=\$70,000\times 1.552081726[/tex]
= $108,645.7208
And, the loan amount for 20 years is $70,000
So,
He would save by paying off 9 years early is
= $108,645.7208 - $70,000
= $38,645.7208
Its $3644.67 since everyone couldn't find it solved it myself ;)
