Use the actuarial method to find the payoff amount for the loan paid in full before its due date.
-Regular Monthly Payment: $646.54 APR: 14.5%
Remaining Payments After Payoff: 18

Question

Quizplus · Accepted Answer

The actuarial method calculates the payoff amount by considering the remaining balance of the loan and the interest saved by paying off early. The correct payoff amount is $11,049.44, which accounts for the remaining payments and the interest that would have been paid over those 18 months.

Use the Actuarial Method to Find the Payoff Amount for the Loan