Solve the Problem Using the Rule of 78s

question 119

Multiple Choice

Solve the problem using the rule of 78s.
-The owner of a bowling alley buys new equipment for $41,000. He makes a down payment of $12,000 and finances the balance at 10% APR over 60 months. Before making the 37th payment, the Owner decides to pay the remaining balance on the loan. What is the total amount due to pay off
The balance?

• A) $11,802.35
• B) $18,336.35
• C) $13,585.77
• D) $12,969.61

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Definitions:

Carcinogens

Substances or exposures that are known to lead to cancer formation in living tissues.

Marijuana Smoke

Refers to the inhalation of smoke or vapors released by heating the flowers, leaves, or extracts of the cannabis plant, often associated with recreational or medicinal use.

Tobacco Smoke

The smoke emitted from burning tobacco products, such as cigarettes, which can contain harmful chemicals and carcinogens.

Hookups

Casual sexual encounters between individuals who are not in a committed relationship.