Compound interest: calculate amount where maximum interest savings occur
Solve this problem:
With a loan amount of $174,154 and an APR of 8.275% and a term of 28 yrs (paid monthly):
1) Calculate the amount of interest paid.
2) Calculate the amount of interest saved by making extra payments in increments of $50 (from $50 – $1000)
3) MAIN QUESTION: calculate the amount where the maximum interest savings occurs.