Kevin Bought a New Car for $22,000

Multiple Choice

Kevin bought a new car for $22,000. He made a down payment of $7,000 and has monthly
Payments of $369.72 for 4 years. He is able to pay off his loan at the end of 30 months. Using the
Actuarial method, find the unearned interest and payoff amount.

A) u = $427.22; payoff amount: $6,597.46
B) u = $427.22; payoff amount: $7,024.66
C) u = $469.94; payoff amount: $5,937.69
D) u = $469.94; payoff amount: $7,257.18