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Take a Test acula guervit Goole Secure ; httpsr www.mathicom Student playerTestaspx?testla-16272928F2centprim yes Jeslie Ann has a 36-month installment loan with a fixed monthly payment of $101.91. The amount she borrowed was $3400. Instead of making her 6th payment, Jeslie Ann is paying off the remaining balance of the loan. Answer parts a) through c) below Number of Payments 30 36 48 a) Determine the APR on the installment loan. APRs [6,59)% (Type an integer or a decimal.) b) How much interest will Jeslie Ann save by paying off the loan early? Jeslie Ann will save $ 189.02 Round to the nearest cent as needed.) c) What is the total amount due to pay off the loan? The payoff amount is $ Type an integer or a decimal.)

Explanation / Answer

1. Compute The Amount of the loan $101.91 * 36 = $3,668.76 2. Compute the finance charge 3,668.76 - 3400 = 268.76 3. Compute the number of $100 3400/100 = 34 4. Compute the finance charge per $100 268.76/34 = 7.9047 5. Look the APR based on FC/$100 and months 7.0% 6. Find n 36 - 6 = 30 7. Find V 30, 7% -> 9.30 8. Compute u u = nPV/(100+V) = 30*101.91*9.30/109.30 = 260.136 9. Compute Payoff payoff = this month + all other months - u = 101.91+ 30*101.91 - 260.136 = 2,899.074

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