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I need help with my intro to finance

perr

Business

Asked: Feb 26th, 2015

Question Description

Aaron Carson of Hays, Kansas, obtained a two-year installment loan for $1,500 to buy some furniture eight months ago. The loan had a 12.6 percent APR and a finance charge of $204.72. His monthly payment is $71.03. Aaron has made eight monthly payments and now wants to pay off the remainder of the loan. The lender will use the rule of 78s method to calculate a prepayment penalty.

a. How much will Aaron need to give the lender to pay off the loan?

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