After the third month of a 12 month loan,
the numerator is: {(n + ) + (n + ) + (n + )} =...
Mathematics, 05.05.2020 11:40 squawk1738
After the third month of a 12 month loan,
the numerator is: {(n + ) + (n + ) + (n + )} =
, and
the denominator is: {(n) + (n + 1) + ... + (n + )} =
Therefore, the fraction is numerator/denominator (to the nearest tenth) =
The Rule of 78 tells us to write a sequence using the numerical equivalents for the months of the year. In set notation we would write {1, 2, 3, , 12}. We could also use algebraic notation and write {n, n + 1, ..., n + 11} where n = 1. Clearly this sequence has a beginning and an end so it is finite.
Next, the Rule of 78 tells us to write a series. A series is a summation of quantities based upon a sequence. In this instance if we add the all the individual terms specified by {n, n + 1, ..., n + 11}, the sum is 78. Thus, the name is the rule of 78.
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