Solve the Problem

question 17

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-A farmer buys a new tractor for $35,000. He makes a down payment of $10,000 and finances the balance at 10.5% APR over 48 months. Before making the 24th payment, the farmer decides to pay
The remaining balance on the loan. How much interest will the farmer save (use the actuarial
Method) ?

• A)$2183.60
• B)$1735.96
• C)$1544.99
• D)$1559.71

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Definitions:

Nationwide Rationing Program

Government-imposed control of the distribution and consumption of resources and goods, typically during wartime or crises.

Korematsu Case

A landmark U.S. Supreme Court decision in 1944 that upheld the government's internment of Japanese Americans during World War II as a wartime necessity.

Supreme Court

The highest federal court in the United States, which has ultimate appellate jurisdiction over all federal and state court cases involving issues of federal law.

Sugar Rationed

A period during which the government limits the amount of sugar that individuals can purchase, often occurring during times of war or scarcity.