Use the Information for the Question(s)below

question 14

Multiple Choice

Use the information for the question(s) below.
Two years ago,you purchased a new SUV.You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR.You monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV.
-Assuming that you have made all of the first 24 payments on time,then the outstanding principal balance on your SUV loan is closest to:

• A)$14,808.
• B)$20,300.
• C)$22,212.
• D)$32,000.

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Definitions:

Algorithms

Step-by-step problem-solving procedures or rules for calculations, data processing, and automated reasoning tasks.

Clearly Defined

To be specified or described in precise or exact terms.

Mental Set

A psychological tendency to approach situations in a certain way based on previous experiences and perceptions.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used.