An 18 month loan with an interest charge of $782.00 is paid off with 5 months remaining. The finance charge refund is
An 18 month loan with an interest charge of $782.00 is paid off with 5 months remaining. The finance charge refund is
$782.00/18=$43.44 prorated interest charge per month.
18 - 5=13 months- after which the loan was paid off
$43.44 X 13=$564.72 Total interest charge when the loan was paid off, therefore:
$782.00 - $564.72=$217.28 Refund of the finance charge.
