Gary bought his first used car for $6,000. Gary borrowed the money from his dad who said he could pay him back the full amount over 5 years. Gary decided he would pay his dad back the full amount in 2 years. How much more is Gary spending per month to pay the loan off in 2 years instead of 5? Let's answer step by step:
A full year has 12 months. So 2 years is 2 * 12 = 24 months. The loan amount is $6,000 that he will repay in 24 months so 6000 / 24 = $250 per month. If he paid his dad back in 5 years that 5 * 12 = 60 months. $6,000 loan spread out over 60 months is 6000 / 60 = $100 per month. To pay it off in 2 years instead of 5, Gary is paying 250 - 100 = $150 more per month. The answer: 150.