Solve the problem.
-The finance charge on a loan taken out by Ivan is $\$ 751$. If there were 18 equal monthly installments needed to repay the loan, and the loan is paid in full with 15 months remaining, find the amount of unearned interest. (Round answer to the nearest cent.)
A) $\$ 527.02$
B) $\$ 14.73$
C) $\$ 26.35$
D) $\$ 515.39$

Question

Quizplus · Accepted Answer

The correct answer is A.The total amount of interest paid is $751. Since there were 18 equal monthly installments, the amount of interest paid each month is $751/18 = $41.72. Since the loan is paid in full with 15 months remaining, the amount of unearned interest is $41.72 x 15 = $527.02.

Solve the Problem $751\$ 751$751 If There Were 18 Equal Monthly Installments Needed to Out

Solve the Problem $\$ 751$ If There Were 18 Equal Monthly Installments Needed to Out