Solve the Problem Using the Rule of 78

question 55

Multiple Choice

Solve the problem using the rule of 78.
-A fisherman buys a new boat for $50,000. He makes a down payment of $17,000 and finances the balance at 8.5% APR over 60 months. Before making the 50th payment, the fisherman decides to
Pay the remaining balance on the loan. How much interest will the fisherman save?

• A)$347.13
• B)$213.07
• C)$229.11
• D)$193.81

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Definitions:

Neural Impulse

The electrical signal that travels along a neuron, facilitating communication between the brain and other parts of the body.

Electrical

Pertaining to the technology, phenomena, or physical laws related to electric charges and their interactions.

Acetylcholine

A neurotransmitter in the nervous system that plays a key role in muscle activation and also influences many functions in the brain, including memory and learning.

Neurotransmitters

Chemical substances in the nervous system that transmit signals from one neuron to another across synapses, influencing mental processes and behavior.