Find the Amortization Payment You Would Need to Make Every

question 97

Multiple Choice

Find the amortization payment you would need to make every six months, at 6% interest compounded semiannually, to pay off a loan of $4,000 in 6 years. (Use Table 12-2 from text)

• A) $767.41
• B) $813.45
• C) $390.14
• D) $401.85

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Definitions:

Production

The process of creating goods or services using labor, technology, materials, and other inputs.

Costs

Expenses incurred in the process of creating, manufacturing, or providing a service or product, including fixed, variable, and semi-variable costs.

Controllable Margin

Contribution margin less controllable fixed costs.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.