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I was assuming that the $2500 was a 10% discount. I also assumed that you would reinvest your 5% interest from the fund. And lastly, I divided the payments into 5 years. Doing this on a monthly basis would be more elegant, but here's the annualized estimate.

Would you believe I used to know how to run these without even thinking? Anyway, here's how it all comes out.

25000-2500= 22500 Initial sum to be paid off after discount.

22500 divided by 5 years: 4500 per year.
Each year starts with the total left in your account, minus the annual payment, then the interest on what is left in the account is computed, and added to the start of the next year.

25000-2500= 22500

22500 divided by 5 years: 4500

End of first year: 22500- 4500= 18000 x .05= 900
2) 18900-4500= 14400 x .05= 720
3) 15120- 4500 = 10620 x .05 = 531
4) 11151-4500= 6651 x .05= 322.05
5) 6983.55- 4500= 2483.55

Pay off 25000, you lose $2483 in this very crude estimation, plus the initial $2500 Total savings: $4983.55

If anyone can find mistakes, I like to see were I messed up.

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