Use Estimation to Select the Best Response

question 110

Multiple Choice

Use estimation to select the best response. Do not calculate. ​
If you purchase a $2,400 item and pay for it with monthly installments for 2 years, the monthly payment is __________.
​

• A) more than $100 per month
• B) $100 per month
• C) less than $100 per month

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Definitions:

Amortized

The process of gradually writing off the initial cost of an asset over a period, or similarly, spreading loan payments over the loan term.

Amortization

Amortization is the process of gradually writing off the initial cost of an intangible asset over its useful life, reflecting its consumption or decline in value.

Intangible Assets

Non-physical assets such as patents, copyrights, and goodwill that have value to a business.

Utility

A measure of the satisfaction or benefit derived from consuming goods and services.