248210 **Use** **the** **rule** **of** **78s** **to** **find** **the** **amount** **of** **interest** **saved**. A $400 loan is **to** be paid off in 66 monthly payments **of** $11.62. **The** borrower decides **to** pay off **the** loan after 18 payments. **Use** **the** **rule** **of** **78s** **to** **find** **the** **amount** **of** **interest** **saved**.

This solution is comprised **of** a detailed explanation **to** **find** how much will I save in finance charges under **the** **rule** **78s**.

271963 Several math questions Question 1
A $400 loan is **to** be paid off in 66 monthly payments **of** $11.62. **The** borrower decides **to** pay off **the** loan after 18 payments. **Use** **the** **rule** **of** **78s** **to** **find** **the** **amount** **of** **interest** **saved**.

Ellen Nancy borrowed $500 at 12% simple **interest**, **to** be repaid in 8 equal monthly installments **of** $70. If she pays off **the** loan when she makes her 4th payment, how much will she save in finance charges under **the** **rule** **of** **78s**?
5.

You deposit $5,000 in an account that pays 8% **interest** per annum. How long will it take **to** double your money?
Answer: 9 years
Hint: **Use** **the** Excel NPER function.
**Use** **the** **Rule** **of** 72. See **the** attached file.

If she pays off **the** loan when she makes her 4th payment, how much will she save in finance charges under **the** **rule** **of** **78s**?

**The** **amount** **to** be **saved** till age 45 is **the** PV **of** **the** **amount** needed in **the** year 60. **The** **amount** **to** be **saved** is 936,540/(1.1)^15 = 224,200.
b. Here we need **to** **find** **the** **amount** that we need **to** save that will grow **to** $224,200 in 15 years.

**To** **find** **the** current **amount** **of** deposit we will **find** **the** Present value.

As I already has **the** saving **of** $25,000. I will need **to** **find** **the** future value **of** this **amount** and deduct from **the** abovementioned result in order **to** **find** how much I need **to** save more per year.

Average size **of** payments= $2,000
Number **of** days **saved**= 1.3333
Therefore **Amount**= $1,066,640 =400x$2000x1.3333
**Interest** rate= 0.00015 per day
Annual **interest** rate= 5.475% per year =0.015%x365
Thus **amount** **saved** in **interest**=