Definition
A formula used to determine rebates on interest for installment loans. For a 12 month loan: 1 + 2 + ... + 12 = 78. After the first month, 12/78th of the interest is owed, 11/78ths after the second month, etc.
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'Rule of 78' appears in the definitions of these other terms on BusinessDictionary.com:
sum of the digits method
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