Results 1 to 2 of 2

Thread: Using Rule of 78s to find loan amount, amount saved

  1. #1

    Using Rule of 78s to find loan amount, amount saved

    Sean purchased a new couch and love seat for his living room for $4500. He made a down payment of $1550 and financed the balance with a 24-month fixed-payment installment loan. Instead of making the eleventh payment of $144.17, he decides to pay off the loan.
    A) how much interest will sean save? ( use the 78s rule)
    B) what is the amount due to pay off the loan?

    rule of 78s: f*k(k+1)/n(n+1)

  2. #2
    Elite Member
    Join Date
    Apr 2005
    Location
    USA
    Posts
    8,224
    Didn't we just do this one?

    $4500 - $1550 = $2950 -- Total Amount Financed

    Oh, Look! New information. We are now to use the Rule of 78's. Well, that will save much less interest.

    Go ahead. Let's see what you get.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •