Use the Rule of 78 to Find the Payoff Amount

question 118

Multiple Choice

Use the Rule of 78 to find the payoff amount for the loan paid in full before the date of maturity.
-Finance charge: $23,156 Total number of payments: 281
Amount per payment: $256
Remaining number of payments, when paid in full: 6

• A)$1527.23
• B)$1523.73
• C)$1779.73
• D)$1783.23

---

Definitions:

Overall Impression

The cumulative perception or judgment formed about something or someone based on various individual attributes, experiences, or interactions.

Fundamental Attribution Error

The tendency to over-emphasize personality traits and underestimate situational factors when explaining another's behavior.

Internal Factors

Elements within an organization that can influence its performance, including its culture, policies, employee skills, and management capabilities.

External Factors

Elements outside of an organization that can affect its performance and strategies, such as market trends, regulations, and economic conditions.