Paying off early

[AprilP]

OK, I THOUGHT I posted this yesterday, but there must have been some sort of glitch, cuz it's not here. If it is here somewhere and I just can't find it, i TRULY apologize.


I have a question for all you brilliant ladies of the FVF.

My son (19 and just moved back home, if you'll recall) asked me yesterday about paying his car note off early.

He has a 36 month loan, has already made 8 payments. His payment is $311 a month. His question was: If he pays $400 a month, how much earlier will the loan be paid off:

Now math was never my strong suit and I don't even know how to go about getting him an answer.

If one of you ladies could please help, I'd be very appreciative. If you could maybe give me a formula or something to calculate, or tell me how to get the answer I'm looking for??

Thank you so much for any help.

[nuisance26]

~You posted it in the Debt Reduction and Money Management Forum. It's there!~

[frugalfoster]

I have a financial calculator but I would need to know how much he owes and what interest rate he is paying.

[zasoror1]

n = -log(1 - ((Ai/400)))/(log (1+i))

n = number of periods (months) remaining
A = Amount of the principle
i = periodic interest rate

[watchingpennies]

I think bankrate.com might help with that too. If you go to the site and go to the calculator section, you can work out how many months it will take to pay something off with different $ amounts or plug in how many months you want to pay off something in and it will tell you the amount to pay. Did this make sense???

[MamaBear209]

Mary Hunt's cheapskate online site also has the Rapid Debt Repayment Calculator you can check out to compare.

[Daydream Believer]

Here is a link to calculate that for you - just enter your own amounts into the boxes. You will need to have he original loan amount and the interest rate.


http://ray.met.fsu.edu/~bret/amortize.html