Alice Dubois was charged $455 in finance charges on a loan for 15 months. Find the finance charge refund if she pays off the loan in full after 10 payments.

Answer 1

I will assume this is "simple interest"

let the rate be r, let the principal be p

so (15/12)(rp) = 455
rp = 364

for only 10 months
interest = (10/12)(rp)

refund = 455 - (10/12)(rp)
= 455 - (5/6)(364)
= $151.67