Ask Question
12 February, 01:21

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

+5
Answers (1)
  1. 12 February, 04:44
    0
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “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. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers