Solve the Problem Using the Loan Payoff Table or an Amortization

question 102

Multiple Choice

Solve the problem using the loan payoff table or an amortization table.
-A new fax machine cost Miller Ltd. $2,759. They are to pay it off in 18 months at 8% interest. What will each monthly payment be, and how much interest will they pay on the loan?

• A)$164.44, $200.92
• B)$124.79, $512.78
• C)$163.17, $178.06
• D)$126.03, $490.46

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Definitions:

Overextension

A linguistic error, common in early language development, where a child applies a word in a broader context than is appropriate.

Functional Fixedness

The tendency to view an object in terms of its name or familiar usage.

Divergent Thinking

A mental approach or technique for producing inventive ideas through the examination of numerous potential answers.

Convergent Thinking

A cognitive process where an individual focuses on finding a single, correct solution to a problem, as opposed to generating multiple solutions.