Calculate the missing information for the installment loan that is being paid off early. Number of...

Question

Question

Calculate the missing information for the installment loan that is being paid off early.

Number of Payments	Payments Made	Payments Remaining	Sum-of-the- Digits Payments Remaining	Sum-of-the- Digits Number of Payments	Rebate Fraction
36	21

business finance

Answer 1

Answer #1

Solution :-

(i)Payments Remaining = Total payments - Payments Made

= 36 - 21 = 15 Payments Remaining

Sum of digits is to be calculated by n(n+1) /2

(ii) Sum of digits Payments Remaining (SOD Payment Remaining) = 15*(15+1) / 2 = 120

(iii) Sum of digits Number of Payments (SOD Number of Payments) = 36*(36+1) / 2 = 666

(iv) Rebate Fraction = SOD Payment remaining / SOD Number of Payment = 120 / 666 = 18.02%

Answer 2

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