Solve the Problem

question 122

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-Sarah Yost took out a 48-month fixed installment loan of $20,000 to open a gift shop. She began making monthly payments of $507.25. Sarah's business does better than expected and instead of
Making her 36th payment, Sarah decides to repay her loan in full. How much interest will Sarah
Save (use the actuarial method) ?

• A)$332.29
• B)$290.89
• C)$317.33
• D)$334.79

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Definitions:

Covert Observation

A research method in which the subjects are not aware they are being observed in order to study behaviors in natural settings.

Systematically Recapturing

Involves regularly revisiting and reviewing data or processes to ensure accuracy and comprehensiveness over time.

Small Group

A social unit consisting of a few people (usually not more than ten), allowing for close and mutual interaction.