Rule of 78
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Also found in: Financial

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A method of computing refunds of unearned finance charges on early payment of a loan so that the refund is proportional to the monthly unpaid balance.

The figure 78 is the sum of the digits of one to twelve—that is, the number of months in a one-year installment contract.

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Rule of 78 (redirected from Rule of the 78)

Rule of 78
(redirected from Rule of the 78)