previous month. Explain why this happened. the interest was less than what she paid in She owed less money, thus, the interest rate decreased. 4. By the time Janet pays off her entire loan, a. how much interest will she have paid? $ 941, 16 b. how much will the trip have cost her in total? $ 4, 441. 20 5. Let's suppose Janet received a year-end bonus and can afford to pay $285.05 during January 2022, a. Rewrite the line of the amortization schedule for 1/1/2022 using her new payment. DATE PAYMENT PRINCIPAL INTEREST TOTAL INTEREST BALANCE 1/1/2022 $285.05 $ 245. 86 $39.14 $ 716.68 $1, 711.08 b . What will be the general impact on Janet's amortization schedule by making this single larger payment? Part II: Change Janet's Schedule In question 5 above, you calculated what the schedule would look like if Janet had made one $285.05 payment in January 2022. You did it by hand, but the Bankrate calculator has a feature that allows you to adjust the entire schedule. 6. Using the Bankrate.com loan calculator, enter in the original loan amount, loan term, and interest rate. 7. Then, click on "Calculate" to get the monthly loan payment of $185.05. 8. Click "Show Amortization Schedule" and scroll down to the table. Make sure that the "Start Date" of the payment in the table is 12/01/2020. 9. Click on "ADD EXTRA PAYMENTS" under the blue Calculate button. Add an extra one-time payment of $100 in January 2022 and click the blue button "APPLY EXTRA PAYMENTS." 10. Now, scroll down to January 2022 in the amortization table. You should see that there is now a one-time payment of $285.05 for that month. a. How did the extra, one-time payment of $100 affect the total interest Janet pays on the loan? Last updated: 5/27/20 www.ngpf.org