Question
Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans are paid in full ahead of
Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans are paid in full ahead of schedule. He is using an employee bonus to pay off his car, which is on a 40-month loan. The total interest for the loan is $2,329, and he has 15 more payments to make.
How much finance charge will he get credit for if he pays the loan in full immediately?
$_____
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Bond Markets Analysis And Strategies
Authors: Frank J.Fabozzi
7th Edition
0136078974, 978-0136078975
