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:

Negative Reinforcement

A learning process where the removal of an unpleasant stimulus strengthens a behavior.

Long-Lasting Suppression

The prolonged inhibition or reduction of a response or activity.

Extinction

In behavioral psychology, the process by which a previously learned response diminishes or disappears following discontinuation of reinforcement.

Puzzle Box

An experimental device used in animal learning experiments, especially in the study of operant conditioning and problem-solving.