# math

A \$400 loan is to be paid off in 66 monthly payments of \$11.62. The borrower decides to pay off the loan after 18 payments. Use the rule of 78s to find the amount of interest saved. (Points : 1)
\$194.13

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3. 👁 171
1. I get a slightly different amount.

66 payments of 11.62 = \$766.92
Finance charge = \$766.92 - 400 = 366.92

Cumulative month-interest charges for 66 months
= 66*67/2 = 2211
Cumulative month-interest charges left to be paid after 18 months (66-18=48 months)
= 48*49/2 = 1176
Interest charges saved
= 1176/2211 * 366.92
= \$195.16

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2. 👎 0
2. I too get the second answer and this is the correct one:

A \$400 loan is to be paid off in 66 monthly payments of \$11.62. The borrower decides to pay off the loan after 18 payments. Use the rule of 78s to find the amount of interest saved.

1. 👍 0
2. 👎 0

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