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Concept explainers
Finance Charges When a loan is paid off early, a portion of the finance charge must be returned to the borrower. By one method of calculating the finance charge (called the rule of 78), the amount of unearned interest (finance charge to be returned) is given by
where u represents unearned interest, f is the original finance charge, n is the number of payments remaining when the loan is paid off, and q is the original number of payments. Find the amount of the unearned interest in each of the given cases.
Original finance charge = $1400, loan scheduled to run 48 months, paid off with 12 payments remaining
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Chapter 1 Solutions
Mathematics with Applications In the Management, Natural, and Social Sciences (12th Edition)
- Please help with a detailed explaination how to get the answerarrow_forwardMATLAB. Awnser written questions (*) in the comments. Null, Rank, and most functions outside of rref() and disp() are not allowed!arrow_forwardMATLAB. Awnser written questions (*) in the comments. Null, Rank, and most functions outside of rref() and disp() are not allowed! Solutions must be given manually! Elementary form means to reduce to RREF manually, without rref(). Please see other attached image for explanationarrow_forward
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