Colleen took out a 30 year loan for $145,000 at an APR of 4.5% compounded monthly. Approximately what would the total cost of her loan be if she paid it off 8 years early?

total cost of her loan be if she paid it off 8 years early $389,507.11

Step-by-step explanation:

The formula for annual compound interest, including principal sum P, rate of interest r, number of years t, and the number of times that interest is compounded per year is n:

A = P (1 + r/n) ^ (nt)

calculate total cost after 22 years

P = $145,000

r = 4.5 %

t = 22 years

n = 12

A = P (1 + r/n) ^ (nt)

A = 145,000 (1 + 4.5/12) ^ (22x12)

A = $389,507.11