Updated: 31 October 2010

Use R78REBATE to calculate the rebate amount for a loan or lease using the Rule of 78.

SELECT [westclintech].[wct].[R78REBATE] (

<@IntAmt, float,>

,<@NumPmts, int,>

,<@PeriodNo, int,>)

the total interest over the life of the loan. You can use the TOTALINT function to obtain this value. *@PV* is an expression of type **float** or of a type that can be implicitly converted to **float**.

the total number of payments to be recorded over the life of the loan. *@NumPmts* is an expression of type **int** or of a type that can be implicitly converted to **int**.

the period number for which you want calculate the reabte amount. Rule of 78 rebates can only be calculated on regular payment dates. You can use the NPNO function to calculate the next payment date. *@PeriodNo* is an expression of type **int** or of a type that can be implicitly converted to **int**.

float

Â· *@IntAmt* must be greater than zero

Â· *@NumPmts* must be greater than 1

Â· *@PeriodNo* must be greater than 1 and less than *@NumPmts*

Â· The Rule of 78 calculation is based on the number of payments, not the number of interest period. Thus odd long first periods do not affect the number of payments, though the first payment may include interest for multiple periods.

Calculate the rebate amount, using the Rule of 78, for a 24,000 loan that originated on 8/15/2009 at a rate of 5.9%, with payments on the first of every month for 36 months, commencing on 9/1/2009, paid off on 12/1/2010. The monthly payment is 727.37

SELECT wct.R78REBATE(

wct.TOTALINT(

36 --Number of Periods

,727.37 --Payment Amount

,24000 --Loan Amount

,0 --Future Value

) --Total Interest

,36 --Number of Payments

,16 --Payoff Period Number

) as R78REBATE

This produces the following result.

R78REBATE

----------------------

757.971351351351

(1 row(s) affected)