Kelly bought a new SUV for $28,000. She made a down payment of $12,500 and has monthly
Payments of $303.28 for 5 years. She is able to pay off her loan at the end of 36 months. Using the
Actuarial method, find the unearned interest and payoff amount.
A)u = $423.41 payoff amount: $7,822.79
B)u = $423.41; payoff amount: $6,400.46
C)u = $470.46; payoff amount: $7,111.55
D)u = $470.46; payoff amount: $7,582.08

Question

Kelly bought a new SUV for $28,000. She made a down payment of $12,500 and has monthly
Payments of $303.28 for 5 years. She is able to pay off her loan at the end of 36 months. Using the
Actuarial method, find the unearned interest and payoff amount. 
A)u = $423.41 payoff amount: $7,822.79 
B)u = $423.41; payoff amount: $6,400.46 
C)u = $470.46; payoff amount: $7,111.55 
D)u = $470.46; payoff amount: $7,582.08

Quizplus · Accepted Answer

The Answer of Kelly bought a new SUV for $28,000. She made a down payment of $12,500 and has monthly
Payments of $303.28 for 5 years. She is able to pay off her loan at the end of 36 months. Using the
Actuarial method, find the unearned interest and payoff amount. 
A)u = $423.41 payoff amount: $7,822.79 
B)u = $423.41; payoff amount: $6,400.46 
C)u = $470.46; payoff amount: $7,111.55 
D)u = $470.46; payoff amount: $7,582.08

Kelly Bought a New SUV for $28,000