Solve the problem. Use an annual percentage rate table if necessary.
-Jennifer has a 60-month fixed installment loan, with a monthly payment of $168.01. The amount she borrowed was $8000. Instead of making her 12th payment, Jennifer is paying the remaining
Balance on the loan. What is the total amount due to pay off the balance (use the actuarial method)?

Question

Quizplus · Accepted Answer

The actuarial method involves calculating the remaining balance by considering the interest accrued and the principal paid. After 11 payments, the remaining balance can be calculated using the formula for the remaining balance of an installment loan. The correct calculation results in a payoff amount of $6855.67.

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