•
FC = (G - AMT - CL)
Rule of 78's Rebate
•
PV = finance charge.
•
I
= interest charged at month k.
k
•
n = number of months in loan.
•
2 n k
–
l k
=
----------------------------- -PV
n n
•
Rebate
=
•
BAL
= (n - k) x PMT - Rebate
k
Skipped Payments
•
A = number of payments per year.
•
B = number of years.
•
C = annual percentage rate as decimal.
•
D = periodic payment amount.
•
E = loan amount.
•
K = number of last payment before payments close the first time.
•
L = number of skipped payment.
------------------------------------------ -
D
=
END
1
D
D
=
-------------- -
BEGIN
1
Savings
+
1
+
1
n k
–
l
k
-------------------- -
2
E
-------------------------------------------------------------------------------------------------------- -
C
AB
1
+
--- -
–
A
END
C
+
--- -
A
k
C
1
+
--- -
A
A
C
C
1
+
--- -
–
1
+
--- -
A
A
152
A
C
–
1
--- -
A
A
A
C
L
K
+
1
+
--- -
A
K
–
1