Solve the Problem

question 138

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-Enrique has a 60-month fixed installment loan, with a monthly payment of $50.69. The amount he Borrowed was $2500. Instead of making his 36th payment, Enrique is paying the remaining Balance on the loan. How much interest will Enrique save (use the actuarial method) ?

• A) $91.73
• B) $95.72
• C) $103.90
• D) $96.86

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Definitions:

Reticular Formation

The reticular formation is a network of neurons in the brainstem that plays a key role in controlling arousal and attention.

Alertness

A state of active attention and readiness to respond to stimuli or challenges presented.

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, hunger, thirst, and other homeostatic systems.

Neural System

The network of nerve cells and fibers which transmits nerve impulses between parts of the body, enabling communication between the brain, spinal cord, and other areas.