10. Applying the rule of 7s to determine prepayment penalties the add-on method include a prepayment praty. A prepayment penalty is a special charge messed to Met e r s that bomower for paying ell a loan early The rule of 73s method (also caled the sum of the digits method) is the most widely used method for calculating a prepayment penty. It Delves from the fact that for a oneyear on the rumbers between 1 and 12 representing each month add up to 78 (12+ 11 + 10 +9+8+7+ 6 To a te the use of the rule of his method, onder the following example: S t rong ched to pay erorilymorth has bomow $4500 for 12 months plus an additional charge of 5720 hy m ns of $435 ($5,220 / 12). Assume that Sasia wants to pay of the S a Ioan Step l achthof Stasis ban g ed a value (12 for the first month, 11 for the second month, 10 for the third month, and so on. Sala Step 2: According to the rule of 788 method, the lender assumes that a portion of the $720 add-on interest has already been paid. To determine by them that by the total amount of add on interest (5720) Do not found intermediate c o n and round your 10. Applying the rule of 7s to determine prepayment penalties the add-on method include a prepayment praty. A prepayment penalty is a special charge messed to Met e r s that bomower for paying ell a loan early The rule of 73s method (also caled the sum of the digits method) is the most widely used method for calculating a prepayment penty. It Delves from the fact that for a oneyear on the rumbers between 1 and 12 representing each month add up to 78 (12+ 11 + 10 +9+8+7+ 6 To a te the use of the rule of his method, onder the following example: S t rong ched to pay erorilymorth has bomow $4500 for 12 months plus an additional charge of 5720 hy m ns of $435 ($5,220 / 12). Assume that Sasia wants to pay of the S a Ioan Step l achthof Stasis ban g ed a value (12 for the first month, 11 for the second month, 10 for the third month, and so on. Sala Step 2: According to the rule of 788 method, the lender assumes that a portion of the $720 add-on interest has already been paid. To determine by them that by the total amount of add on interest (5720) Do not found intermediate c o n and round your