A business is taking alon to buy equipment. the loan is 40,000, set at 4% interest and will be paid off in 12 years. the bank wants to save the business money by calculatine the interst on a Remainin-Balance basis in case he pays it off early The annual paymentis assumed to be 3500 of principan and $1600 of interest. Make a bable of the payments if the business were to apy $5540 in total payments after year 1. What would be the toatl ajmount of interst paid? How many years early will the business pay off the loan by paying more than the minimum $5100 payment?

Question

A business is taking alon to buy equipment.  the loan is 40,000, set at 4% interest and will be paid off in 12 years.  the bank wants to save the business money by calculatine the interst on a Remainin-Balance basis in case he pays it off early  The annual paymentis assumed to be 3500 of principan and $1600 of interest.  Make a bable of the payments if the business were to apy $5540 in total payments after year 1.  What would be the toatl ajmount of interst paid? How many years early will the business pay off the loan by paying more than the minimum  $5100 payment?