Answer to Question #275152 in Financial Math for Amy

Question

Mike Marquez purchased a lawn tractor for $9000.He made a down payment of $1000, and financed the rest at 7% in 24 months. He paid off the loan at the end of the fifteenth months. Find the amount of his refund using the rule of 78s?

Answer 1

Tractor Price = 9,000

Dawn Payment = 1,000

Interest Rate = 7%

Time Period = 24 Months

Loan Fully Paid = 15 Months

The amount of his refund using the rule of 78s is 89.45