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The Rule of 78 needs the borrower to pay a greater part of curiosity in the sooner Portion of a loan cycle, which decreases the probable discounts to the borrower in shelling out off their loan.
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Knowledge the Rule of seventy eight The Rule of seventy eight offers larger body weight to months in the earlier Portion of a borrower’s loan cycle when calculating curiosity, which boosts the financial gain for that lender.
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