Question

# Kelly bought a new SUV for \$28,000. She made a down payment of \$13,500 and has...

Kelly bought a new SUV for \$28,000. She made a down payment of \$13,500 and has monthly payments of \$283.72 for 5 years. She is able to pay off her loan at the end of 36 months. Determine the total installment price and the finance charge. Once the APR is determined, use the actuarial method to find the unearned interest and payoff amount. (Hint: to compute the payoff consider how many months have been paid by the end of 36 months.)

 # of payments Annual Percentage Rates 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% Finance charge per \$100 of amount financed 6 \$1.76 1.90 2.05 2.20 2.35 2.49 2.64 2.79 2.94 3.08 3.23 12 3.28 3.56 3.83 4.11 4.39 4.66 4.94 5.22 5.50 5.78 6.06 18 4.82 5.22 5.63 6.04 6.45 6.86 7.28 7.69 8.10 8.52 8.93 24 6.37 6.91 7.45 8.00 8.54 9.09 9.64 10.19 10.75 11.30 11.86 30 7.94 8.61 9.30 9.98 10.66 11.35 12.04 12.74 13.43 14.13 14.83 36 9.52 10.34 11.16 11.98 12.81 13.64 14.48 15.32 16.16 17.01 17.86 48 12.73 13.83 14.94 16.06 17.18 18.31 19.45 20.59 21.74 22.90 24.06 60 16.00 17.40 18.81 20.23 21.66 23.10 24.55 26.01 27.48 28.96 30.45

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