Using the Rule of 78, Find the Amount of Unearned

question 46

Multiple Choice

Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to the nearest cent.
-Finance charge: $747
Total number of payments: 24
Remaining number of payments, when paid in full: 8

• A)$69.72
• B)$97.43
• C)$75.78
• D)$89.64

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Definitions:

Inventory Accounts

Accounts used to track the value of a company's stored resources that are intended for sale.

Production Cost Report

A detailed report that provides information about the total cost and output of a production department or process for a given period.

Business Organization

A structured entity formed for the purpose of conducting commercial, industrial, or professional activities.

Just-In-Time Management

A management strategy that aligns raw-material orders from suppliers directly with production schedules, minimizing inventory levels and waste.