An installment loan is made for 36 monthly payments of $160.43. The loan carries an APR of 11%, and the finance charge associated with the loan is $875.48. Instead of making the twenty-fourth payment, the borrower decides to pay the remaining balance and terminate the loan. (Refer to an APR table as necessary.)
a. Use the actuarial method to determine how much interest will be saved by repaying the loan early.
b. By using the actuarial method, what is the total amount due on the day of the loan's termination?
c. Use the rule of 78 to determine how much interest will be saved by repaying the loan early.
d. By the rule of 78, what is the total amount due on the day of the loan's termination.