The Rule of 78 Explained скачать в хорошем качестве

The Rule of 78 Explained

✔ https://StudyForce.com ✔ https://Biology-Forums.com ✔ Ask questions here: https://Biology-Forums.com/index.php?... Follow us: ▶ Facebook:   / studyforceps   ▶ Instagram:   / studyforceonline   ▶ Twitter:   / studyforceps   If a loan is paid back before it is due, some of the interest may be refunded. The Rule of 78 is a method for determining the amount of refund of finance charge for an installment loan that is paid before it is due. Here's how this number is derived… In a twelve-month loan: Month 1: Interest accrues on 12 parts of the principal. Month 2: Interest accrues on 11 parts of the principal. Month 3: Interest accrues on 10 parts of the principal. At the end of 12 months, there is a total of 78 parts: 12 + 11 +10 + 9 + 8 + 7… + 1 = 78 If the loan is paid off at the end of month 9: Month 10: Interest is accrued on 3 parts of the principal. Month 11: Interest is accrued on 2 parts of the principal. Month 12: Interest is accrued on 1 part of the principal. The sum of these parts are 3 + 2 + 1 = 6. Therefore, 6/78 of the total interest must be refunded. Q1. A loan for 12 months with interest of $468.85 is paid in full with five payments remaining. What is the refund fraction for the interest refund? Q2. A loan of 12 months with interest of $224 is paid in full with four payments remaining. Find the refund fraction for the interest refund, then the interest refund.