Solve the Problem Using the Rule of 78s

question 29

Multiple Choice

Solve the problem using the rule of 78s.
-Dallas Wright took out a 48-month fixed installment loan of $6500 to purchase a new all-terrain Vehicle (ATV) . He began making monthly payments of $175.50. Instead of making his 27th Payment, Dallas decides to repay his loan in full. How much interest will Dallas save?

• A) $377.93
• B) $29.30
• C) $358.19
• D) $1654.71

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Definitions:

US

In the context of classical conditioning, it stands for the Unconditioned Stimulus, which automatically triggers a response without any learning needed.

Conditioned Stimulus

A formerly neutral cue that, after being linked with an unconditioned stimulus, comes to evoke a conditioned response over time.

Aldous Huxley

An English writer and philosopher best known for his novel "Brave New World," exploring themes of dystopia, technology, and societal change.

Brave New World

A dystopian novel by Aldous Huxley, which explores themes of technological advancements, centralized control, and the loss of individuality.