Solve. -Calculate the Monthly Payment for a Student Loan of $42,434

question 75

Multiple Choice

Solve.
-Calculate the monthly payment for a student loan of $42,434 at a fixed APR of 7% for 10 years.

• A)$591.47
• B)$422.19
• C)$492.69
• D)$739.78

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Definitions:

LIFO Method

The Last-In, First-Out (LIFO) Method is an inventory valuation approach where the last items added to inventory are assumed to be the first sold, affecting the cost of goods sold and inventory valuation on financial statements.

Effective Tax Rate

The average percentage of income that a business or individual pays in taxes, calculated by dividing total tax expense by taxable income.

FIFO Method

An inventory valuation method where the first items placed in inventory are the first sold, standing for First-In, First-Out.

Average-Cost Method

An inventory valuation method that determines the cost of goods sold and ending inventory value by computing the average cost of all similar items.