5-You obtained a two-year installment loan for $2,500 to buy a computer 7 months ago. The...
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5-You obtained a two-year installment loan for $2,500 to buy a computer 7 months ago. The loan had 8.5 percent APR and a finance charge of $227.34 as add-on. You made seven monthly payments and now want to pay off the remainder of the loan. The lender will use the rule of 78s method to calculate a prepayment penalty. a) What is your monthly payment? b) How much you need to give the lender to pay off the loan? c) What is the dollar amount of the prepayment penalty on this loan? 5-You obtained a two-year installment loan for $2,500 to buy a computer 7 months ago. The loan had 8.5 percent APR and a finance charge of $227.34 as add-on. You made seven monthly payments and now want to pay off the remainder of the loan. The lender will use the rule of 78s method to calculate a prepayment penalty. a) What is your monthly payment? b) How much you need to give the lender to pay off the loan? c) What is the dollar amount of the prepayment penalty on this loan?
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