Solve the Problem

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-A farmer buys a new tractor for $35,000. He makes a down payment of $10,000 and finances the balance at 10.5% APR over 48 months. Before making the 24th payment, the farmer decides to pay
The remaining balance on the loan. How much interest will the farmer save (use the actuarial
Method) ?

A) $2183.60
B) $1735.96
C) $1544.99
D) $1559.71