Suppose Little Jimmy borrows $100,000 in loans. He is able to get these loans with a 6% interest rate. We'll assume Jimmy is able to save $1,500 each month to put toward an annual payment for his loan.

a. How much would he have paid in total?

b. How much would he have paid in interest? Give two ways of calculating this. (For example, one from adding numbers from the table, and one from using your answer in part (a)

c. In this example, we assumed that interest and payments were done annually. However, usually loans are charged interest and have payments made monthly. Explain what we would have to do differently if we were going to calculate in the above scenario on a monthly basis.

5 c. Return to the annual scenario: Saving $1,500 monthly could be difficult, and often payments are not determined by how much can be saved, but instead by how much time it takes to pay off the loan. change the payment amount in your spreadsheet to determine (to the nearest dollar) how much the annual payment should be in order to pay off the loan in 15 years.

Annual Payment: __________

Monthly amount to save: _______________