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16 August, 02:49

Which formula dictates that you pay more interest at the beginning of a loan and pay less and less interest as the debt is reduced?

A. Adjusted balance method

B. Accelerated balance

C. The rule of 78s

D. Average daily balance

E. Previous balance method

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Answers (1)
  1. 16 August, 03:14
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    C. The rule of 78s

    Explanation:

    The Rule of 78 is a method used by some lenders to calculate interest charges on a loan. The Rule of 78 requires the borrower to pay a greater portion of interest in the earlier part of a loan cycle, which decreases the potential savings for the borrower in paying off their loan
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