Solve the Problem Using the Rule of 78s

question 75

Multiple Choice

Solve the problem using the rule of 78s.
-Carlo has a 36-month fixed installment loan, with a monthly payment of $369.72. The amount he Borrowed was $11,000. Instead of making his 30th payment, Carlo is paying the remaining balance On the loan. What is the total amount due to pay off the balance?

• A) $2163.33
• B) $1888.04
• C) $2515.22
• D) $2145.50

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Profit Sharing

A compensation scheme where employees receive a portion of the company's profit, in addition to their regular salary.

Capital Balance

The amount of money an owner has invested in a business plus any retained earnings or minus any losses.

Capital Balance

The amount of money that a partner in a business has contributed to the business minus any withdrawals or distributions.