Financial Analysis (Amortization)

Explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25.

The current loan balance is $ 112,242.47. If the loan is paid with the annual compounding interest of 5.75 %, after 25 years the total payment would be approximately $ 454116.

If we pay this amount in 25 years, the annual payment will be:

454116 = X {(1+i) ^ 25 - 1)} /i

454116 = X {(1+0.0575) ^ 25 - 1)} /0.0575

The amount that will be paid in 25 years amortization will be as follows:

X ...