Using the Rule of 78, find the amount of unearned interest for the loan paid in full before the date of maturity. Round to the nearest cent.
-Finance charge: $6,761
Total number of payments: 48
Remaining number of payments, when paid in full: 11

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The Rule of 78 is a method for calculating the amount of unearned interest on a loan that is paid off early. The formula for the Rule of 78 is:Unearned interest = (Finance charge x Remaining number of payments) / Total number of paymentsIn this case, the finance charge is $6,761, the total number of payments is 48, and the remaining number of payments is 11. Plugging these values into the formula, we get:Unearned interest = (6,761 x 11) / 48 = $379.44Therefore, the amount of unearned interest is $379.44.

Using the Rule of 78, Find the Amount of Unearned