1. **Problem statement:** Correct the calculation of interest saved by paying off the loan early after 11 payments instead of 12. 2. **Recall the loan details:** Loan amount $PV=12000$, monthly payment $P=232$, total payments $n=60$, monthly interest rate $r=0.005$ (6% APR / 12). 3. **Calculate total interest if paid fully:** Total paid $= 232 \times 60 = 13920$, interest $= 13920 - 12000 = 1920$. 4. **Calculate remaining balance after 11 payments:** Use formula for remaining balance after $k$ payments: $$B = PV \times (1+r)^k - P \times \frac{(1+r)^k - 1}{r}$$ where $k=11$. 5. **Calculate powers:** $$(1+0.005)^{11} = 1.005^{11} \approx 1.0569$$ 6. **Calculate balance:** $$B = 12000 \times 1.0569 - 232 \times \frac{1.0569 - 1}{0.005} = 12682.8 - 232 \times 11.38 = 12682.8 - 2639.2 = 10043.6$$ 7. **Calculate interest paid so far:** Total paid so far $= 232 \times 11 = 2552$. 8. **Calculate principal paid so far:** $$\text{Principal paid} = PV - B = 12000 - 10043.6 = 1956.4$$ 9. **Calculate interest paid so far:** $$\text{Interest paid} = \text{Total paid so far} - \text{Principal paid} = 2552 - 1956.4 = 595.6$$ 10. **Calculate interest saved by early payoff:** Total interest if fully paid $= 1920$ Interest saved $= 1920 - 595.6 = 1324.4$ **Final answers:** - APR = 6% - Interest saved by early payoff after 11 payments = 1324.4