Use the Loan Payoff Table to Find the Monthly Payment

question 90

Multiple Choice

Use the loan payoff table to find the monthly payment and finance charge for the loan.
-Amount financed: $11,268
Number of months: 24
APR: 13%

• A)$540.98, $1,715.52
• B)$535.68, $1,588.32
• C)$530.38, $1,461.12
• D)$441.93, $661.68

---

Definitions:

Gross Method

Gross method is an accounting practice where purchases are recorded at full cost without accounting for any purchase discounts potentially available.

Net Method

An accounting approach that records transactions after deducting any discounts, rather than recording them at their gross amount and including the discounts as a separate item.

Purchase Discounts

Price reductions given by suppliers to buyers as an incentive for early payment of their purchase invoices.

Journalize

The process of recording business transactions in the journal, making note of the debit and credit of each transaction as per double-entry bookkeeping rules.