When an installment loan is repaid early, there is a second method, in addition to the actuarial

Question:

When an installment loan is repaid early, there is a second method, in addition to the actuarial method, used for calculating unearned interest called the rule of 78s. Although rarely used today, there are still some lenders using this method. Write a brief report describing the rule of 78s and comparing it to the actuarial method.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

A Survey Of Mathematics With Applications

ISBN: 9780135740460

11th Edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

Question Posted: