Do the Math $7-6$

Rule of $78s$

Miguel Perez of Pamona, California, obtained a two$-$year installment loan for $$1,400$ to buy a television set eight months ago. The loan had a $22\mathrm{.}3$ percent APR and a finance charge of $$348\mathrm{.}40.$ His monthly payment is $$72\mathrm{.}85.$ Miguel 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 Miguel need to give the lender to pay off the loan? Do not round intermediate calculations. Round your answer to the nearest cent.

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b$.$ What is the dollar amount of the prepayment penalty on this loan? Use the rounded answer from part a in your calculations. Round your answer to the nearest cent.

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