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:

Seeking

The process of actively looking for or attempting to obtain something, such as information, resources, or fulfillment.

Apologizing

The act of expressing regret or sorry for one's actions or words, often used as a means to mend or maintain social relationships.

Guilty

A legal term denoting that someone has been found responsible for committing a crime or offense, or a feeling of having done wrong or committed a misdemeanor.

Acquaintances

Individuals known by someone, but usually not close friends.