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)
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.