Rule Of 78

Business / Taxes / Rule Of 78: A practice, called the Rule of 78, means that lenders front-load the interest they charge on a short-term loan to guarantee their profit if you pay off your loan before the end of its term. In other words, you pay most of the interest before you begin to make substantial repayment of principal. For example, on a one-year loan, you’d pay 15% of the interest in the first month, 14% in the second month, and only 1% in the last month. The practice is called the Rule of 78 because that’s the sum of the twelve payments in a one-year loan (1+2+3+?€¦+12 = 78). It’s illegal to calculate loans with terms longer than 61 months using the Rule of 78, and a number of states outlaw the practice for all loans. But where the Rule of 78 is used, the loans may be described as precomputed or precalculated loans, or as loans that offer a rebate of finance charges if you prepay.

Other Words for Rule

Rule Verb Synonyms: regulation, order, law, ordinance, ruling, decree, ukase, statute, principle, direction, guide, guideline, precept
Rule Noun Synonyms: direct, guide, manage, control, lead, head (up), preside (over), superintend, oversee, supervise, regulate, govern, run
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Plague Of Justinian

Health / Disease / Plague Of Justinian: (541-542) The Plague of Justinian was a pandemic that afflicted the Byzantine Empire, including its capital Constantinople, in the years 541–542 AD. It has been speculated that this pandemic was cau MORE

Place Of Articulation

Entertainment / Literature / Place Of Articulation: The point in the oral cavity where the position of speech organs (lips, teeth, tongue, etc.) Is most important for a particular sound. MORE

Pie Model Of Capital Structure

Business / Finance / Pie Model Of Capital Structure: A model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets. MORE

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