How Much Interest Would You Pay in Total on a 48-Month

question 68

Multiple Choice

How much interest would you pay in total on a 48-month, $20,000 car loan at 13.2% compounded monthly?

• A) $3,750
• B) $4,759
• C) $7,128
• D) $5,850
• E) $11,537

---

Definitions:

Fair Value

The assessed financial value of an asset or liability, reflecting current market prices in an open and competitive environment.

Significant Influence

Significant Influence is the power to participate in the financial and operating policy decisions of an investee, but not control them, typically associated with ownership of 20% to 50% of voting shares.

Database

A structured set of data held in a computer or server, accessible in various ways for efficient retrieval and management.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control them. This is often evidenced by owning a substantial minority of voting stock.