Solve the Problem Using the Rule of 78s

question 14

Multiple Choice

Solve the problem using the rule of 78s.
-Hassan used a fixed installment loan from his bank to finance his used car purchase. He borrowed $5500 and has a 36 monthly payments of $220.00 each. Instead of making his 13th payment, Hassan decides to pay the remaining balance on the loan. How much interest will Hassan save?

• A) $971.84
• B) $1153.32
• C) $1083.11
• D) $1002.88

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Definitions:

Natural Light

Sunlight that is utilized in buildings and homes to reduce the need for artificial lighting and to improve the well-being of occupants.

Sustainability Initiatives

Strategies and practices aimed at promoting environmental conservation, social responsibility, and economic efficiency in business operations.

Customer Demand

The desire and requirement for products or services by end consumers, which drives the production and supply chain activities.

Increased Revenue

Refers to the growth in income generated from a business's products or services over a certain period.