Solve the Problem

question 259

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-A retired couple buys a new recreational vehicle (RV) for $42,000. They make a down payment of $13,000 and finance the balance at 9.0% APR over 60 months. Before making the 30th payment, the
Couple decides to pay the remaining balance on the loan. How much interest will the couple save
(use the actuarial method) ?

Definitions:

Nuclear Power Plants

Facilities that generate electricity through the controlled nuclear reaction of uranium or other nuclear fuels, producing heat to boil water and produce steam for driving turbines.

Fission

The splitting of an atomic nucleus into two or more smaller nuclei, accompanied by the release of energy and usually one or more neutrons.

Fusion

A process where two light atomic nuclei combine to form a heavier nucleus, releasing energy.