Kevin bought a new car for $\$ 22,000$. He made a down payment of $\$ 10,000$ and has monthly payments of $\$ 295.78$ for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.

A) u = $341.78; payoff amount: $5619.73
B) u = $375.95; payoff amount: $5805.74
C) u = $375.95; payoff amount: $4750.15
D) u = $341.78; payoff amount: $5278.04

Question

Kevin bought a new car for $\$ 22,000$. He made a down payment of $\$ 10,000$ and has monthly payments of $\$ 295.78$ for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.

A) u = $341.78; payoff amount: $5619.73 
B) u = $375.95; payoff amount: $5805.74 
C) u = $375.95; payoff amount: $4750.15 
D) u = $341.78; payoff amount: $5278.04

Quizplus · Accepted Answer

The Answer of Kevin bought a new car for $\$ 22,000$. He made a down payment of $\$ 10,000$ and has monthly payments of $\$ 295.78$ for 4 years. He is able to pay off his loan at the end of 30 months. Using the actuarial method, find the unearned interest and payoff amount.

A) u = $341.78; payoff amount: $5619.73 
B) u = $375.95; payoff amount: $5805.74 
C) u = $375.95; payoff amount: $4750.15 
D) u = $341.78; payoff amount: $5278.04

Kevin Bought a New Car For $22,000\$ 22,000$22,000 He Made a Down Payment Of 22,000

Kevin Bought a New Car For $\$ 22,000$ He Made a Down Payment Of 22,000