Question

Deborah borrowed $3,200. She financed it with a 48-month installment loan with fixed payments of $72.25 per month. Instead of making her 12th payment, Deborah decided to pay off the balance of her loan early. (a) what is the APR of the installment loan? (b) how much interest is saved by paying off the loan early using the actuarial method? (c) how much must Deborah pay to satisfy the loan?

Name: deborah borrowed 3200 she financed it with a 48 month installment loan with fixed payments of 7225 per month instead of making her 12th payment deborah decided to pay off the balance of her 47054
Uploaded: 2022-12-13T07:48:09-08:00
Duration: 4 min 52 s
Channel: Rashmi Sinha
Description: deborah borrowed 3200 she financed it with a 48 month installment loan with fixed payments of 7225 per month instead of making her 12th payment deborah decided to pay off the balance of her 47054

          Deborah borrowed $3,200. She financed it with a 48-month
installment loan with fixed payments of $72.25 per month. Instead
of making her 12th payment, Deborah decided to pay off the balance
of her loan early. (a) what is the APR of the installment loan? (b)
how much interest is saved by paying off the loan early using the
actuarial method? (c) how much must Deborah pay to satisfy the
loan?

Added by Paul F.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

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Solved by Expert Rashmi Sinha

12/13/2022

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Deborah borrowed $3,200. She financed it with a 48-month installment loan with fixed payments of $72.25 per month. Instead of making her 12th payment, Deborah decided to pay off the balance of her loan early. (a) what is the APR of the installment loan? (b) how much interest is saved by paying off the loan early using the actuarial method? (c) how much must Deborah pay to satisfy the loan?