An 18 month loan with an interest charge of $782.00 is paid off with 5 months remaining. The finance charge refund is
A. $68.60
B. $182.00
C. $81.27
D. $72.40
Let x= Total markup for 18 months
x^18=782
x=1.447^(1/18)=1.0208 rate per month
1.0206^13=1.303 rate for 13 months
$782/1.303=~$600, therefore,
$782 - $600=~$182.00 Finance refund.
