Mathematics, 15.03.2020 18:09 cofran
Use the example above and fill in the missing values.
Consider a three-year loan (so we'll assume the numbers 1 through 36) for $5,000 with interest at 10% per year. Using
standard amortization, the monthly payment is $161.33. In this example, we will not worry about exact or ordinary
interest because the total interest to be paid is $808.13.
After the fifth month, the borrower decides to prepay the whole loan. Under a standard amortization plan the borrower
would have paid $198.28 in cumulative interest. However, using the Rule of 78 a lender would calculate the fraction of
the total interest based on two series:
{(n+35)+(n+34)+(n+33)+(n+32)+(n+31) ]
{(n)+(n+1)+...+(n+35)
If you add 36, 35, 34, 33 and 32 the sum is
If you sum the numbers from 1 to 36, the sum is
The fraction (the first sum/the total sum) to the nearest tenth -
%. The lender will multiply this fraction by the
total interest
The cumulative interest = (the percentage calculated above) x ($808.13) = $
The difference between the amount paid under a standard amortization plan and the amount paid under a Rule of 78
plan is: $
Answers: 1
Mathematics, 21.06.2019 23:00
John has 1/2 pound of oranges to share with julie. if they share the oranges equally, how much will each of them have?
Answers: 1
Mathematics, 22.06.2019 00:10
Hello, i need compare km^2 and km. what's difference in this?
Answers: 2
Mathematics, 22.06.2019 04:00
Ahealth-food producer has 250 samples of a new snack to distribute in the mall. the producer has to keep at least 50 samples for display in the health food for the product launch. how long will the samples last if consumers are taking the samples at a rate of 25 every hour
Answers: 2
Use the example above and fill in the missing values.
Consider a three-year loan (so we'll ass...
Consider a three-year loan (so we'll ass...
History, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
History, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Chemistry, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
History, 23.03.2021 21:20
Physics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20
Mathematics, 23.03.2021 21:20