Matthew Wants to Take Out a Loan to Buy a Car

question 37

Multiple Choice

Matthew wants to take out a loan to buy a car. He calculates that he can make repayments of $4000 per year. If he can get a five-year loan with an interest rate of 7.5%, what is the maximum price he can pay for the car?

• A) $21,674
• B) $18,243
• C) $20,324
• D) $16,184

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Definitions:

Complementary

In healthcare, approaches or therapies that are used in conjunction with mainstream medical treatment rather than as an alternative to it.

Alternative Medicine

A group of diverse medical and health care systems, practices, and products that are not currently considered part of conventional medicine and are used as alternatives to conventional treatment.

Optimism

An attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Hardiness

A personality trait characterized by resilience and the ability to endure difficult conditions, contributing to effective stress management and coping strategies.