Liz finances a piano for $3,080 by taking out an installment loan for 60 months. The payments were $82.13 per month and the total finance charge was $1,847.80. After 24 months, Liz decided to pay off the loan. After calculating the finance charge rebate, find her loan payoff.
Finance charge rebate is 672.48, having trouble applying the rest.. thx
To find Liz's loan payoff after 24 months, we need to calculate the remaining principal balance of the loan.
The total finance charge for the loan is $1,847.80 over 60 months. To find the monthly finance charge, we can divide the total finance charge by the number of months.
Monthly finance charge = Total finance charge / Number of months
Monthly finance charge = $1,847.80 / 60
Monthly finance charge = $30.80
Next, we need to calculate the remaining principal balance after 24 months. To do this, we subtract the amount of payments made from the original loan amount.
Amount of payments made = Monthly payment * Number of months
Amount of payments made = $82.13 * 24
Amount of payments made = $1,971.12
Remaining principal balance = Original loan amount - Amount of payments made
Remaining principal balance = $3,080 - $1,971.12
Remaining principal balance = $1,108.88
Now, let's subtract the finance charge rebate from the remaining principal balance to find Liz's loan payoff after 24 months.
Loan payoff = Remaining principal balance - Finance charge rebate
Loan payoff = $1,108.88 - $672.48
Loan payoff = $436.40
Therefore, Liz's loan payoff after 24 months is $436.40.
To find Liz's loan payoff after 24 months, we need to calculate the remaining principal amount of the loan at that time and subtract the finance charge rebate. Here's how you can do it:
1. Calculate the total amount paid after 24 months:
The monthly payment for 60 months is $82.13, so after 24 months, Liz will have paid a total of:
Total amount paid = Monthly payment * Number of months
Total amount paid = $82.13 * 24
Total amount paid = $1,971.12
2. Determine the remaining principal amount after 24 months:
To find the remaining principal amount, we subtract the total amount paid from the initial loan amount:
Remaining principal amount = Initial loan amount - Total amount paid
The initial loan amount is $3,080, so:
Remaining principal amount = $3,080 - $1,971.12
Remaining principal amount = $1,108.88
3. Calculate the loan payoff after applying the finance charge rebate:
To get the loan payoff, we subtract the finance charge rebate from the remaining principal amount:
Loan payoff = Remaining principal amount - Finance charge rebate
The finance charge rebate is $672.48, so:
Loan payoff = $1,108.88 - $672.48
Loan payoff = $436.40
Therefore, Liz's loan payoff after 24 months, after applying the finance charge rebate, is $436.40.