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Compound interest: calculate amount where maximum interest savings occur

Author:
September 23rd, 2022

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.

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