Let's go through the calculations step by step to solve part (c) of the problem, where we want to find how much money is saved if twice the monthly payment is made. We'll break this down into logical parts.

Step-by-step breakdown:

1. Original Payment Plan:

   • Loan amount = $12,760
   • Interest rate = 14.9% annual (monthly interest rate $r = \frac{14.9}{12} \% = 1.24167\%$)
   • Monthly payment = $296
   • Number of payments (already given) = 63
   • Total interest paid in this plan (given) = $5,620.35

2. Twice the Monthly Payment Plan:

   • New monthly payment = $296 \times 2 = $592
   • We will calculate the number of payments required and the interest paid in this case.

Step 1: Calculate the number of payments with the higher payment.

The formula for calculating the number of payments $n$ when paying off a loan is given by:

$n = \frac{-\log(1 - r \frac{P}{M})}{\log(1 + r)}$

Where:

• $r$ is the monthly interest rate (0.0124167)
• $P$ is the loan amount ($12,760)
• $M$ is the new monthly payment ($592)

Let's calculate the number of payments.If the monthly payment is doubled to $592, it will take 26 payments to pay off the debt.

Step 2: Calculate the total interest paid with the higher payment.

The total interest paid is the difference between the total payments made and the original loan amount. Total payments made will be:

$\text{Total payments} = M \times n$ Where $M = 592$ and $n = 26$.

We can then calculate the total interest as:

$\text{Total interest} = (\text{Total payments}) - P$

Let's compute this.It seems like I can’t do more advanced data analysis right now. Please try again later.

Would you like me to guide you through the remaining calculations manually, or answer any other questions?

Here are some related questions for practice:

1. What is the monthly interest rate if the annual rate is 12%?
2. How does doubling the payment affect the total interest paid on a loan?
3. How can you calculate the total interest paid using an amortization formula?
4. What would happen if you tripled the monthly payment instead?
5. How do interest rates affect the time it takes to repay a loan?

Tip: Increasing monthly payments reduces the number of payments, significantly lowering the total interest paid.