Use the Rule of 78 to Find the Amount of Unearned

question 127

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: $24,359 Total number of payments: 38
Remaining number of payments, when paid in full: 5

• A)$346.50
• B)$519.75
• C)$328.73
• D)$493.10

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Definitions:

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Michigan Supreme Court

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