Using the Rule of 78, Find the Amount of Unearned

question 104

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: $24,517
Total number of payments: 37
Remaining number of payments, when paid in full: 7

• A)$1,030.74
• B)$976.50
• C)$773.06
• D)$732.37

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Definitions:

Cheat

To act dishonestly or unfairly in order to gain an advantage.

Absolute Free Will

The concept that individuals have the complete freedom to choose their actions and make decisions independently of any external constraints or influences.

Relative Free Will

Relative free will refers to the concept that while human actions and decisions are influenced by various internal and external constraints, individuals still possess a degree of choice or control over their actions within those constraints.

Social Behavior

Actions and interactions among individuals in a society, influenced by social norms and cultural contexts.