Question 6 (multiple choice)
Suppose you have a 12-month loan of $1,200.00 at 12% interest to purchase a lawn mower and other gardening equipment. Each monthly payment is $106.56. The balance after the fourth payment is $816.04. How much do you save by paying off the loan with the fifth payment?
(Hint: First calculate the payoff: Find the interest on the balance due and add it to the balance due. Add the amount of the first four payments to the payoff in month 5. Finally, compare this total to the monthly payment multiplied by 12.)
A. $426.24
B. $852.48
C. $842.20
D. $28.28
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Question 6 (multiple choice) Suppose you have a 12-month loan of $1,200.00 at 12% interest to purchase a lawn mower and other gardening ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
What happens if you pay off an installment loan early? Question options: You'll incur a prepayment fee. The full interest will be charged regardless of when you pay off the loan. The interest will be adjusted accordingly.
Answers (2)
1. Which of the following changes does not cause an increase in the quantity of goods and services that can be produced by one worker, or in one hour of work? A. an increase in the quantity of capital per hour worked. B.
Answers (1)
Fairmont Textile has a plant in which employees have been having trouble with carpal tunnel syndrome (CTS, an inflammation of the nerves that pass through the carpal tunnel, a tight space at the base of the palm), resulting from long-term repetitive
Answers (1)
When considering an external environment with a high level of resources and low degree of uncertainty, managers are most likely to
Answers (1)
Turtle Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 150 100 % Variable expenses 60 40 % Contribution margin $ 90 60 % The company is currently selling 7,000
Answers (1)
New Questions in Business
What does "monetary policy" mean? A. Federal Reserve policies on creating new banks B. political policies pursued by the federal government C. actions the Federal Reserve takes to influence the economy D.
Answers (1)
What is the meaning of market in economics
Answers (1)
If you were a police officer, at night during your shift, you confront a suspicious man walking in an elite neighborhood. You stop to question the man, but he refuses even to give you his name.
Answers (1)
The account "Warranty Liability": is adjusted at the end of the year. is credited each time a warranty repair is made. has a year-end credit balance equal to the cost of warranty repairs made during the year. is closed at the end of the year.
Answers (1)
What percentage of U. S. households have no access to banking services? A) 8 percent B) 10 percent C) 15 percent D) 50 percent
Answers (1)