Talk:Rule of 78s/Archives/2015

Partly Wrong!
The example given at the end is partly right and partly wrong. The example states:

"Thus the consumer would not receive as much of a refund if it were divided equally by 12 months ($6.50 per month). Under this scenario they would have received a refund of $58.50, much more beneficial than the $45.00 refund."

It is true that the consumer would recieve a smaller refund based on the rule of 78s. However even if you look at it in a simple interest situation, the scenario of "$6.50 per month" would not be correct because even in a simple interest loan there is a larger interest charge in the earlier months, not some flat amount per month. It would be good if someone more knowledgable in finance than I am could give a better example. — Preceding unsigned comment added by 68.115.211.226 (talk) 17:40, 2 December 2011 (UTC)


 * Information.svg Thank you for your suggestion. When you believe an article needs improvement, please feel free to make those changes. Wikipedia is a wiki, so anyone can edit almost any article by simply following the  link at the top. The Wikipedia community encourages you to be bold in updating pages. Don't worry too much about making honest mistakes—they're likely to be found and corrected quickly. If you're not sure how editing works, check out how to edit a page, or use the sandbox to try out your editing skills.  New contributors are always welcome. You don't even need to log in (although there are many reasons why you might want to). TJRC (talk) 19:48, 2 December 2011 (UTC)

The example leaves out important details, such as the starting principal and the interest rate. It has to be rewritten from scratch. --Stannius (talk) 23:36, 29 January 2013 (UTC)