Use the example above and fill in the missing values. Consider a three-year loan (so we'll assume the numbers 1 through 36) for $5,000 with Interest at 10% per year. Using standard amortization, the monthly payment is $161.33. In this example, we will not worry about exact or ordinary Interest because the total Interest to be paid is $808.13. After the fifth month, the borrower decides to prepay the whole loan. Under a standard amortization plan the borrower would have paid $198.28 In cumulative interest. However, using the Rule of 78 a lender would calculate the fraction of the total interest based on two series: [(n+35)(n+34)+(n+33)+(n+32)+(n+31)) {(n)+(n+1)+...+(n+35)) If you add 36, 35, 34, 33, and 32, the sum is If you sum the numbers from 1 to 36, the sum is The fraction (the first sum / the total sum) to the nearest tenth = Y %. The lender will multiply this fraction by the total Interest, The cumulative Interest = (the percentage calculated above) x ($808.13) = $ The difference between the amount pald under a standard amortization plan and the amount pald under a Rule of 78 plan is: $ NEXT QUESTION ASK FOR HELP TURN IT IN ​