The loan below was paid in full before its due date. (a) Obtain the value of h from the annual percentage rate table. Then (b) use the actuarial method to find the amount of unearned interest, and (c) find the payoff amount. Regular Monthly Payment $414.84 APR 4.0% (a) h= $3.20 (b) The unearned interest is $ Remaining Number of Scheduled Payments after Payoff 18 Click the icon to view the annual percentage rate table. (Round to the nearest cent as needed.)
The loan below was paid in full before its due date. (a) Obtain the value of h from the annual percentage rate table. Then (b) use the actuarial method to find the amount of unearned interest, and (c) find the payoff amount. Regular Monthly Payment $414.84 APR 4.0% (a) h= $3.20 (b) The unearned interest is $ Remaining Number of Scheduled Payments after Payoff 18 Click the icon to view the annual percentage rate table. (Round to the nearest cent as needed.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:The loan below was paid in full before its due date. (a) Obtain the value of h from the annual percentage rate table. Then (b) use the actuarial
method to find the amount of unearned interest, and (c) find the payoff amount.
Regular Monthly
Payment
$414.84
APR
4.0%
Remaining Number of Scheduled
Payments after Payoff
18
Click the icon to view the annual percentage rate table.
...
(a) h= $3.20
(b) The unearned interest is $ (Round to the nearest cent as needed.)
Transcribed Image Text:APR Table
Number of
Monthly
Payments (n)
6
12
18
24
30
36
48
60
4.0%
4.5% 5.0% 5.5%
1.17
1.32 1.46 1.61
2.18
2.45
2.73
3.20
3.60
4.00
4.22 4.75
5.29
5.25
5.92
6.59
6.29
7.09
7.90
8.38
9.46
10.54
10.50
11.86 13.23
Annual Percentage Rate (APR) for Monthly Payment Loans
Annual Percentage Rate (APR)
6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0%
Finance Charge per $100 of Amount Financed (h)
2.05 2.20 2.35 2.49 2.64 2.79
2.94
5.50
1.90
3.56 3.83 4.11 4.39 4.66 4.94 5.22
5.22 5.63 6.04 6.45 6.86 7.28 7.69 8.10
6.91 7.45 8.00 8.55 9.09 9.64 10.19 10.75
8.61 9.30 9.98 10.66 11.35 12.04 12.74 13.43
10.34 11.16 11.98 12.81 13.64 14.48
14.48
13.83 14.94 16.06 17.18 18.31 19.45 20.59 21.74
17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48
15.32 16.16
1.76
3.00 3.28
4.41 4.82
5.83 6.37
7.29 7.94
8.71 9.52
11.63 12.73
14.61 16.00
3.08 3.23
5.78
6.06
8.93
8.52
11.30 11.86
14.13 14.83
17.01 17.86 18.71
22.90 24.06 25.23
28.96
28.96 30.45 31.96
3.38
3.53
6.34
6.62
9.35
9.77
12.42 12.98
15.54 16.24
19.57
26.40
33.47
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