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Solve the Problem nn Payments Is Paid Off kk Payments Ahead of Schedule, the Amount of Unearned Interest

Question 76

Multiple Choice

Solve the problem.
-When a loan scheduled to run nn payments is paid off kk payments ahead of schedule, the amount of unearned interest u\mathrm{u} is given by u=fk(k+1) n(n+1) \mathrm{u}=\mathrm{f} \cdot \frac{\mathrm{k}(\mathrm{k}+1) }{\mathrm{n}(\mathrm{n}+1) } , where f\mathrm{f} is the total scheduled finance charge. The finance charge on a loan taken out by Ximena is $668\$ 668 . If there were 24 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 your answer to the nearest cent.)


A) $87.13\$ 87.13
B) $267.20\$ 267.20
C) $100.20\$ 100.20
D) $254.13\$ 254.13

Correct Answer:

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