Solve the Problem Using the Rule of 78s

question 33

Multiple Choice

Solve the problem using the rule of 78s.
-A college student buys a used car for $5000. She makes a down payment of $1,100 and finances the Balance at 8.5% APR over 24 months. Before making the 15th payment, she decides to pay the Remaining balance on the loan. How much interest will the student save?

• A) $68.18
• B) $53.18
• C) $58.49
• D) $46.24

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Definitions:

Virtual Teams

Teams that operate and collaborate primarily through electronic communications technology.

Task Forces

Temporary groups formed to achieve a specific goal or to solve a particular problem within an organization.

Shared Mental Models

A cognitive framework shared among members of a team or organization that helps in understanding, interpreting, and predicting the actions of others within that group.

Cross-functional Teams

Cross-functional teams are groups composed of members from different departments or areas of expertise, working together towards a common goal.