Finance Methods

Straight-Line Amortization: Understanding the Equal Allocation of Interest
A detailed exploration of Straight-Line Amortization, a method that allocates equal interest expense across all periods, disregarding the bond's book value changes.
The Rule of 78: Understanding Interest Calculations and Lender Practices
A comprehensive overview of the Rule of 78, how lenders use it to calculate interest charges on loans, the method for calculation, and implications for borrowers.

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