Question $2$: Amortization Schedule $(55$ points$)7\mathrm{.}2\%$ interest rate compounded monthly and you are required to pay your first monthly payment at the end of the month $($April $30$ th$).$

PART A $(10$ points$)7\mathrm{.}2\%$ interest rate compounded monthly and you are required to pay your first monthly payment at the end of the month $($April $30$ th$).$

After $3$ years of owning the Subaru, you have graduated from Drexel and have a job. Your monthly income is higher now so you decide to increase your monthly payment to $$700$ a month $($from period $37$ onwards$).$

Copy the amortization schedule from parts A and B below. Make sure everything copies correctly. Once everything is copied, go to period $37.$ Replace the payment to $$700.$ Copy this down so it replaces the payment till the end of the schedule

Once you have completed the above step, answer the following questions:

At which period is the loan completely paid off? $($Hint: look when the $$700$ payment is more than the beginning

balance$)$

How much interest do you save by increasing your monthly payment? $($Hint: look at the cumulative interest at the

period you answered in the previous question and subtract that from the total interest you paid in the previous

amortization schedule$)$