Use an Amortization Table to Solve the Problem

question 46

Multiple Choice

Use an amortization table to solve the problem. Round to the nearest cent.
-The monthly payments on a $73,000 loan at 13% annual interest are $807.38. How much of the first monthly payment will go toward the principal?

• A) $104.96
• B) $790.83
• C) $16.55
• D) $702.42

---

Definitions:

Sale Price

The ultimate selling price of a product, once all discounts or promotional offers have been taken into account.

Gross Profit

The difference between the selling price and the unit cost of an item of merchandise. (Also called markup.)

Markdown

The reduction of a product's selling price, often to clear inventory or promote sales.

Mark-up

An enhancement to the price at which goods are bought to include expenses and profit.