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27 July, 08:51

an 18-month loan with an interest charge of $782.00 is paid off with 5 months remaining. the finance charge refund is

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  1. 27 July, 08:58
    0
    Hello there!

    Answer:

    $182.00

    Explanation:

    In order to solve this, we would need to use the mark up equation:

    x^m=y

    x = total mark up

    m = the amount of months

    y = interest paid

    Your equations should look like this:

    x^18 = 782.

    Now we solve.

    x = 1.447^ (1/18) = 1.0208 (this would be the rate per month)

    1.0206^13 = 1.303 (this would be the rate for 13 months, since he has 5 months remaining)

    782/1.303 = 600

    782 - 600 = 182.00

    After solving, you would have $182.00 of financed refunded.
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