A loan is being repaid with monthly payments of $1349.59 for 20 years using the sum of digits method.The total interest over the life of the loan is $173,901.60.What is the interest rebate after 140 payments? (Answer to the nearest dollar)

Question

Quizplus · Accepted Answer

The sum of digits method, also known as the Rule of 78s, allocates more interest to the earlier payments. After 140 payments, a significant portion of the interest has been paid. The rebate is calculated based on the remaining interest, which is $30,367.

A Loan Is Being Repaid with Monthly Payments of $1349