Solve the Problem

question 32

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-Reggie King took out a 36-month fixed installment loan of $17,000 to open a sporting goods store. He began making monthly payments of $536.63. Reggieʹs business does better than expected and Instead of making his 30th payment, Reggie decides to repay his loan in full. What is the total Amount due to pay off the balance (use the actuarial method) ?

• A) $3678.20
• B) $3139.63
• C) $3701.43
• D) $4214.84

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Definitions:

Good

A tangible product that satisfies human wants or needs.

Service

An (intangible) act or use for which a consumer, firm, or government is willing to pay.

Cross Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, indicating the relationship between goods as substitutes or complements.

DVD Players

Electronic devices that play discs using the Digital Video Disc (DVD) format, majorly used for watching movies and other video content.