Use the Rule of 78 to Find the Amount of Unearned

question 228

Multiple Choice

Use the Rule of 78 to find the amount of unearned interest for the loan paid in full before the date of maturity.
-Finance charge: $315 Total number of payments: 23
Remaining number of payments, when paid in full: 4

• A)$7.47
• B)$11.41
• C)$6.85
• D)$12.45

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Definitions:

Mental Processes

Activities of the mind involved in thinking, understanding, learning, and remembering.

Waking Awareness

A state of consciousness where an individual is fully alert, attentive, and engaged with their surroundings.

Altered States

Conditions of consciousness that differ significantly from one's normal waking state, such as those induced by sleep, meditation, or drug use.

States Consciousness

Varying levels of awareness, including wakefulness, sleep, dreaming, and other altered states of consciousness.