The Rule of 78s Is Used to Calculate the ____________

question 65

Multiple Choice

The Rule of 78s is used to calculate the ____________ when an installment loan is paid off early. ​

• A)APR
• B)balance due
• C)prepayment penalty
• D)basic cost of money

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Definitions:

Product Price

The financial cost of obtaining a product or service.

Marginal Revenue Product

The supplementary income realized by the application of one more unit of a resource, like labor or capital.

Labor

The engagement of human physical strength and intellectual power in producing goods and offering services.

Additional Revenue

The increase in total revenue that results from selling an additional unit of a product or service.