Answer to Question #276223 in Financial Math for Frfrfrfrgr

Question

Read the question and solve the problem below. Write your complete solution.

Mike Marquez purchased a lawn tractor for Php 9,000. He made a down

payment of Php 1,000 and financed the rest at 7% payable 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 = Php 9,000

Dawn Payment = Php 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 Php 89.45