Oops, ok no deposit, it was 100% financed by the bank.
The last two months of the loan (months 81 and 82) i will pay ~1100-1200 total to complete it.
I’m not sure if we ever came up with the numbers needed to calculate all of this…
But one alternative approach is to pretend that you’re putting $15/month into a savings account with the same interest rate as loan. The interest that you “earn” in this fictional account is the interest that you save on the loan. Doing the calculation this way is perhaps easier because it doesn’t require you to calculate two amortization tables and subtract the difference - you just need the one compounding interest calculation.
That’s technically true but like sailor said it’s unnecessarily complicating the scenario.
Superhal has two payment plans, one imposed by the terms of his note and one self-imposed to pay off the car early. The faster pay off plan saved $460 in nominal dollars over the life of the loan.
If we were talking about more money we might want to take into account the time value of that savings, but the short answer is, Superhal, you saved at most $460 over 7 years.
What dracoi is getting at is that this isn’t the same as saving $460 7 years ago when you signed the note (which would’ve been ideal), nor is as bad as saving no money until the end when you got $460 in savings (which would suck). It’s somewhere in between, because you saved a little bit of that $460 each month over 7 years. But the bottom line is it wasn’t a huge amount of money.