Solve the problem. Use an annual percentage rate table if necessary.
-Joan used a fixed installment loan from her bank to finance her home renovation project. She Borrowed $11,000 and has a 60 monthly payments of $212.67 each. Instead of making her 36th Payment, Joan decides to pay the remaining balance on the loan. How much interest will Joan save (use the actuarial method)?
A) $325.12
B) $305.65
C) $292.92
D) $309.34

Question

Quizplus · Accepted Answer

The Answer of Solve the problem. Use an annual percentage rate table if necessary.
-Joan used a fixed installment loan from her bank to finance her home renovation project. She Borrowed $11,000 and has a 60 monthly payments of $212.67 each. Instead of making her 36th Payment, Joan decides to pay the remaining balance on the loan. How much interest will Joan save (use the actuarial method)?
A) $325.12
B) $305.65
C) $292.92
D) $309.34

Solve the Problem