Solve the Problem Using the Rule of 78

question 140

Multiple Choice

Solve the problem using the rule of 78.
-Dallas Wright took out a 48-month fixed installment loan of $6250 to purchase a new all-terrain vehicle (ATV) . He began making monthly payments of $212.50. Instead of making his 28th
Payment, Dallas decides to repay his loan in full. How much interest will Dallas save?

• A)$1821.43
• B)$665.34
• C)$32.25
• D)$705.36

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