Solve the Problem

question 61

Multiple Choice

Solve the problem. Round to the nearest cent as needed.
-The monthly payments on a $79,000 loan at 14% annual interest are $982.76. How much of the first monthly payment will go toward interest?

• A) $921.67
• B) $845.17
• C) $137.59
• D) $1106.00

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Definitions:

Sunk Costs

These are costs that have already been incurred and cannot be recovered, thus should not affect future business decisions.

Future Costs

Costs that will be incurred in the future as a result of current decisions or plans.

Alternatives

Different options or strategies available to be chosen in decision-making processes.

Future Costs

These are costs expected to be incurred in the future as a result of current or future actions.