A $1750 loan is to be paid off in 66 monthly payments of $42.40. The borrower decides to pay off the loan after 30 payments. Use the rule of 78s to find the amount of interest saved.

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The rule of 78s is a method for calculating the amount of interest that has been paid on a loan. It is based on the assumption that the interest is paid in equal installments over the life of the loan. In this case, the loan is for $1750 and the monthly payment is $42.40. The borrower decides to pay off the loan after 30 payments. The total amount of interest paid over the life of the loan would be $1750 x 0.12 = $210. The amount of interest saved by paying off the loan after 30 payments is $210 - $42.40 x 30 = $315.26.

A $1750 Loan Is to Be Paid Off in 66