Use the Rule of 78 to Find the Amount of Unearned

question 126

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.
-Amount Financed: $4500 Regular Monthly Payment: $184.50
Total Number of Payments scheduled: 36
Loan repaid in full instead of making: 18th payment

• A)$632.47
• B)$549.97
• C)$593.97
• D)$520.20

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Definitions:

Confidence Interval

A breadth of values, extracted from sample-based statistics, considered likely to enfold the value of an unexplored population parameter.

Resting Heart Rate

The number of heartbeats per minute while an individual is at rest, indicating their basic level of cardiac activity.

Confidence Interval

A span of numbers extracted from sampled information, which is expected to encompass the true value of an unidentified parameter within the population, associated with a specified confidence level.

Cholesterol Level

The measure of cholesterol in the blood, important for assessing cardiovascular health and risk of heart disease.