Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 6/24/83; site unisoft.UUCP Path: utzoo!watmath!clyde!floyd!harpo!ihnp4!zehntel!dual!unisoft!phil From: phil@unisoft.UUCP (Phil Ronzone) Newsgroups: net.consumers,net.misc Subject: Re: What is "rule of 78's"? Message-ID: <239@unisoft.UUCP> Date: Wed, 21-Mar-84 15:00:15 EST Article-I.D.: unisoft.239 Posted: Wed Mar 21 15:00:15 1984 Date-Received: Fri, 23-Mar-84 08:39:40 EST References: <1070@proper.UUCP> Organization: UniSoft Corp., Berkeley Lines: 8 Keywords: rule of 78's,loans,accounting Rule of 78: when you borrow money, say for a year, and thus have a year, or 12 months to repay it in, it is assumed that you have use of 12 parts of the money for the first month, 11 parts of the money the next month, 10 parts of the money the next month, ..... 12 + 11 + 10 + ... = 78. It is most often dealt with when prepaying a loan, since most loans have equal monthly payments, with the principal and interest payments varying.