Solve the Problem Using the Rule of 78

question 79

Multiple Choice

Solve the problem using the rule of 78.
-Carlo has a 36-month fixed installment loan, with a monthly payment of $466.67. The amount he borrowed was $14,000. Instead of making his 27th payment, Carlo is paying the remaining balance
On the loan. What is the total amount due to pay off the balance?

• A)$4040.00
• B)$3529.51
• C)$4010.81
• D)$4477.48

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Definitions:

Gold Standard

A financial framework in which a nation's paper currency holds a direct value correlation with gold.

Trade Deficits

A situation where a country's imports exceed its exports, leading to more money leaving the country than coming in.

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Gold Standard

A financial system in which the value of a nation's paper currency is directly tied to gold.