Solve the Problem

question 253

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-Reggie King took out a 36-month fixed installment loan of $20,000 to open a sporting goods store. He began making monthly payments of $631.33. Reggie's business does better than expected and
Instead of making his 18th payment, Reggie decides to repay his loan in full. What is the total
Amount due to pay off the balance (use the actuarial method) ?

• A)$10,584.43
• B)$10,634.48
• C)$11,265.81
• D)$10,713.08

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Definitions:

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, holding all other factors constant.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Tax Imposed

The act of levying or enforcing a financial charge or other levy upon a taxpayer by a governmental organization.

Supply of Labor

The sum of hours employees are prepared and available to work at a specified rate of pay, within a certain timeframe.