Find the refund fraction for a 60-month loan if it is paid in full with 22 months remaining.

refund fraction is 0.138

Step-by-step explanation:

given data

loan time = 60 month

remaining time = 22 month

to find out

refund fraction

solution

we will apply here refund fraction that is

refund fraction = remaining time / loan time ... 1

refund fraction = 22 + 21 + 20 + ... + 1) / (60 + 59 + 58 + 57 + ... + 1)

refund fraction = (22 + 1) * 22/2 / (60 + 1) * 60/2

refund fraction = 253 / 1830

refund fraction = 0.13825

so refund fraction is 0.138