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

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. 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.

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