On September 15, Miguel Has Student Loans Totalling $25,000

question 43

Multiple Choice

On September 15, Miguel has student loans totalling $25,000. Miguel agreed to a $350 per month repayment schedule at which time the annual simple interest rate was 7.45%. Determine the balance of the loan at the end of November.

• A) $25,666.55
• B) $25,555.44
• C) $24,444.55
• D) $24,333.22
• E) $24,666,33

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Definitions:

Depreciation

The orderly apportionment of a physical asset's cost throughout its useful life.

Useful Life

The estimated period an asset is expected to be used before it is deemed no longer useful for operations.

Units-Of-Activity

A depreciation method that allocates cost based on the actual usage, work performed, or units produced by an asset.

Asset’s Use

The utilization of an asset in a way that enhances its value or contributes to earning revenue.