Explanation This method states that, the lender earns more interest at the early stage of the loan when most of the amount lies with borrower, than in the later stage. In this method, the finance charge is divided into parts equal to the sum of the digits of the months of the loan. As the sum of the digits of a 12 -month loan is 78 , it can also be termed as Rule of 78 . Sum - o f - t h e - d

Contemporary Mathematics for Business and Consumers

7th Edition

ISBN: 9781285189758

Author: Robert Brechner, George Bergeman

Publisher: Cengage Learning

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Chapter 13, Problem 14CR

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To fill: The blank space provided for the statement, “The most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-_ method or the Rule of _”.

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Contemporary Mathematics for Business and Consumers

Ch. 13.I - Mike Dennis has a Bank of America account with an...Ch. 13.I - Kendra Wolf has a Bank of America revolving credit...Ch. 13.I - Angler Marine has a $75,000 line of credit with...Ch. 13.I - Calculate the missing information on the following...Ch. 13.I - Calculate the missing information on the following...Ch. 13.I - Calculate the missing information on the following...Ch. 13.I - Calculate the missing information on the following...Ch. 13.I - Prob. 5RE Ch. 13.I - Calculate the missing information on the following...Ch. 13.I - Anny Winslow has a Bank of America revolving...

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The blank space provided for the statement, “The most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-_____ method or the Rule of _____”.

Solution Summary: The author explains the most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-digits method or the Rule of 78.

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To fill: The blank space provided for the statement, “The most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-_____ method or the Rule of _____”.

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The blank space provided for the statement, “The most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-_ method or the Rule of _”.

To fill: The blank space provided for the statement, “The most common method for calculating the finance charge rebate of an installment loan is known as the sum-of-the-_ method or the Rule of _”.