3. Sierra wants to borrow $18,000. His bank offers a 4.3% interest rate. He can afford $400 a month for loan payments. What should be the length of his loan?
1
(Use the loan calculator https://www. trufcu. com/truloans/loan-calculator
Change the calculator from "Payment" to "Amount" and then keep changing the "Term in Months" until
you get the loan amount to as close to $18,000 you can.)
(2 points) a. Length of loan:$18,085
(2 points) b. Total interest paid:$18,366.98
4. Use your answer and the loan information from question #3 to determine what effect a $50 increase
in Sierra's monthly payment would have on the length of her loan.
(2 points) a. Length of loan
(2 points) b. Total interest paid
(2 points) c. How much do you save by paying an extra $50 a month?