Rule of 78

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.

Featured Advertiser

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Rule of 72 rule of five