Collateral is the net worth of your household.

The answer is "false".

Collateral is a property or other resource that a borrower offers as a path for a bank to anchor the advance. On the off chance that the borrower quits making the guaranteed credit installments, the loan specialist can grab the security to recover its misfortunes. Since insurance offers some security to the moneylender should the borrower neglect to pay back the advance, advances that are anchored by guarantee regularly have bring down financing costs than unbound advances. A moneylender's case to a borrower's security is known as a lien.  

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23