posted by Riquetta Elliott on .
Joanne Flynn bought a new boat for $16,200. She put a $2,800 down payment on it. The bank’s loan was for 50 months. Finance charges totaled $5,380.00. Assume Joanne decided to pay off the loan at the end of the 22th month. (Rule of 78)
What rebate would she be entitled to and what would be the actual payoff amount? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit this $" sign in your response.). Ok I add 16,200 to 2,800 and I got 19,000. Then I add 19,000 to 5,380 which is equal to 24,380, 50-22=28. Then I use the rule of 78 to get the rebate. 22=406, 50=1,275. 406/1,275*5,380= 1,713.16. Then I divide 24,380/50=487.60. Then I started to find the final payment 487.60*28=13,652.80-1,713.16=11,939.64 which is the final payment. When I click check my work, it shows that 11,939.64 was not the payment. I got the right rebate, but I need the right answer for the final payment. I need to know what am I doing wrong ? Can someone help me.