Alana Agreed to Purchase a Vehicle with the Following Terms

question 55

Multiple Choice

Alana agreed to purchase a vehicle with the following terms. She will make a $3,000 down payment on a car costing $15,000. Assuming no interest, how much would she pay per month if she financed this vehicle over 24 months?

• A) $1,000
• B) $500
• C) $250
• D) $625

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Definitions:

FUTA Expense

The total cost incurred by an employer for the Federal Unemployment Tax, contributing to the U.S. government's unemployment fund.

Form 941

A federal tax form used by employers to report quarterly income taxes, social security tax, and Medicare tax withheld from employees' paychecks.

Form 940

A tax form filed by employers to report annual Federal Unemployment Tax Act (FUTA) tax.

Form W-2

An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.