More Information about the Rule of 78 Method

A method of earning rent charges in which the lessor or assignee earns rent charges faster than under the Constant Yield (Actuarial) method so that less of each payment reduces your lease balance. Under this method, when you terminate your lease early, you will have paid more rent changes than under the Constant Yield (Actuarial) method. Your early termination payoff (early termination balance) will therefore be higher than the early termination payoff under the Constant Yield (Actuarial) method.

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