Solve the Problem. -Sammy Borrowed $10,000 to Purchase a New Car at an Car

question 59

Multiple Choice

Solve the problem.
-Sammy borrowed $10,000 to purchase a new car at an annual interest rate of 11%. She is to pay it back in equal monthly payments over a 5-year period. How much total interest will be paid over the period of the loan?
Round to the nearest dollar.

• A) $92
• B) $3630
• C) $1435
• D) $3045

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Definitions:

Primary Liability

The direct responsibility of an entity or individual to pay a debt or damages without first requiring enforcement against another party.

Model Business Corporation Act

A template law designed to standardize the regulation of corporate affairs in the United States, frequently adopted or adapted by state legislatures.

Insolvency

The state of being unable to pay debts as they fall due, or having liabilities exceed the value of assets.

Derivative Action

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often an insider of the corporation.