Solve the Problem. -The Monthly Payment on A(n)$59,000 Loan at 11% Annual Interest

question 249

Multiple Choice

Solve the problem.
-The monthly payment on a(n) $59,000 loan at 11% annual interest is $670.59. How much of the first monthly payment will go toward the principal?

• A)$73.76
• B)$129.76
• C)$540.83
• D)$596.83

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Definitions:

Activity Level

A measure of the volume of production or operations, often used as a basis for allocating costs or setting prices.

Direct Materials

Raw materials that are directly traceable and integral to the finished product.

Flexible Budget

Flexible budget is an adjustable budget that changes or scales according to the actual level of activity or volume achieved, providing more accurate budgeting than static budgets.

Activity Level

refers to the volume of production or operations an entity achieves in a specific period, often impacting costs and resource allocation.