What Is the Size of the Final Unequal Payment of a Loan

question 29

Multiple Choice

What is the size of the final unequal payment of a loan for $2723.44 if it has quarterly payments of $500? The interest rate is 8.4% compounded quarterly.

• A) $432.14
• B) $423.14
• C) $441.14
• D) $414.14
• E) $424.14

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Definitions:

BMWs

Refers to vehicles manufactured by Bayerische Motoren Werke AG, a German multinational company known for producing luxury vehicles and motorcycles.

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods, showing the level of satisfaction derived from each bundle.

Cow Feed

A type of animal feed specifically formulated to meet the nutritional needs of cows.

Consumption

The act of using up goods and services to meet personal or collective needs or desires, typically measured within an economy over a period.