his Question: 1 pt Annual Percentage Rate (APR) 9.0% The loan was paid in full b
ID: 3195378 • Letter: H
Question
his Question: 1 pt Annual Percentage Rate (APR) 9.0% The loan was paid in full before its due date. Obtain the value of h from the given table. Then use the actuarial method to find the amount of 11 unearned interest and the payoff amount Regular monthly payment: $345.31 APR 10.0% Remaining number of scheduled payments after payoff 18 Num of monthly 9.5% 10% 10.5% 11% ments Finance charge per $100 of amount financed (h) 12 18 $2.64 $2.79 $2.94 $3.08 $3.23 $4.94 $5.22 $5.50 $5.78 $6.06 $7 28 $769 $8.10 $8.52 $8.93 The unearned interest is (Round to the nearest cent as needed) The payoff amount is $ (Round to the nearest cent as needed ) Enter your answer in each of the answer boxes Type here to searchExplanation / Answer
Unearned Interest (U ) = (P x n x h)/(100 + h) = 345.51 x 18 x $3.08/(100 + 3.08) = $185.82
u = unearned interest
p = monthly payment
n = number of remaining monthly payments
h = the value from the APR table that corresponds to the annual percentage of loan rate for the number of remaining payments
Payoff amount = (n x p ) - unearned interest = (345.51 x 18 ) – $185.82 = $6033.36
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