Question

1. How does the rule of 78 work?

2. If you have a 24-month loan that is paid in full with 10 months remaining, using the Rule of 78, would you expect a refund? Why or why not?

3. Give a specific example about how you would calculate a refund using the Rule of 78

I have tried everything and I can’t figure this out and my grade is going down please help!

Answer 1

1- The Rule of 78 is a method used by some lenders to calculate interest charges on a loan.

2- the Rule of 78 Loan, you would have paid $391.50 of interest after 12 months. 5k or 10k

3- use the rule of 78 to calculate an interest refund, and some states prohibit its use altogether.

Step-by-step explanation: