Solve the Problem Using the Rule of 78s

question 148

Multiple Choice

Solve the problem using the rule of 78s.
-Veronica used a fixed installment loan from her bank to finance her new car purchase. She Borrowed $26,000 and has a 60 monthly payments of $585.00 each. Instead of making her 49th Payment, Veronica decides to pay the remaining balance on the loan. What is the total amount due To pay off the balance?

• A) $5801.46
• B) $6152.23
• C) $6691.80
• D) $6106.80

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Definitions:

Working Memory

An intellectual capacity system with limitations, meant for short-duration information retention for processing requirements.

Implicit

Something understood or implied without being stated openly; often refers to unconscious attitudes or beliefs.

Sensory

Relating to or involving the senses or sensation.

Procedural Memory

A type of long-term memory involved in the unconscious memory of skills and how to perform certain procedures.