Solve the Problem

question 42

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-A landscaping company buys a new bulldozer for $55,000. The company makes a down payment Of $15,000 and finances the balance at 6.0% APR over 60 months. Before making the 30th payment, The company owner decides to pay the remaining balance on the loan. What is the total amount Due to pay off the balance (use the actuarial method) ?

• A) $30,326.79
• B) $22,266.76
• C) $23,040.09
• D) $21,357.92

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Definitions:

Undue Influence

An unlawful practice where an individual takes advantage of their position of power over another person to influence their decisions.

Unilateral Mistake

An error made by one party in a contract situation, which may not necessarily void the contract unless the other party knew or should have known of the mistake.

Implied Misrepresentation

A false statement or omission made not through direct statements but through implications or conduct that misleads another party.

Undue Influence

Improper or coercive persuasion that leads an individual to act contrary to their free will or without adequate attention to the consequences.