Solve the Problem

question 170

Multiple Choice

Solve the problem. Use an annual percentage rate table if necessary.
-Jennifer has a 60-month fixed installment loan, with a monthly payment of $168.01. The amount she borrowed was $8000. Instead of making her 12th payment, Jennifer is paying the remaining
Balance on the loan. What is the total amount due to pay off the balance (use the actuarial method) ?

• A)$6855.67
• B)$6765.67
• C)$6404.13
• D)$6687.65

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Definitions:

Sole Shareholder

A single individual or entity that holds all the shares of a corporation, essentially owning the company outright.

FMV

Stands for Fair Market Value, which is the price that property would sell for on the open market.

Taxable Gain

The portion of profit or income derived from selling an asset that is subject to taxation.

Sole Shareholder

An individual who owns 100% of the shares of a corporation, making them the exclusive owner.