Solve the Problem Using the Rule of 78

question 97

Multiple Choice

Solve the problem using the rule of 78.
-Jamal has a 60-month fixed installment loan, with a monthly payment of $276.00. The amount he borrowed was $11,500. Instead of making his 39th payment, Jamal is paying the remaining balance
On the loan. How much interest will Jamal save?

• A)$734.53
• B)$638.72
• C)$600.34
• D)$574.85

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Definitions:

Optic Nerve

A paired nerve that transmits visual information from the retina to the brain.

Ganglion Cells

Neurons located in the retina that receive visual information from photoreceptors and transmit it to the brain via the optic nerve.

Wavelength

The distance between consecutive crests or troughs in a wave, which determines its color in light and pitch in sound.

Invisible

Unable to be seen; not visible to the eye.