Ray Flagg took out a 60-month fixed installment loan of $12,000 to open a new pet store. He paid no money down and began making monthly payments of $232. Ray's business does better than expected and instead of making his 12th payment, Ray wishes to repay his loan in full. Complete parts a) through c).

a) Determine the APR of the installment loan.

b) How much interest will Ray save by paying off the loan early? (Use the actuarial method)

c) What is the total amount due to pay off the loan?

Answer rating: 100% (QA)

Time 60 months Loan Amount12000 Monthly payment232 Finance charge on the bond is the total interest ... View the full answer