Use the Loan Payoff Table to Find the Monthly Payment

question 4

Multiple Choice

Use the loan payoff table to find the monthly payment and finance charge for the loan.
-Amount financed: $60,642
Number of months: 48
APR: 8%

• A)$1,509.38, $11,808.24
• B)$1,480.27, $10,410.96
• C)$1,340.79, $3,715.92
• D)$1,660.38, $19,056.24

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Definitions:

Fiscal Year

A 12-month period used for accounting and reporting purposes, which may or may not align with the calendar year.

Payroll Taxes

Taxes that are withheld from employees’ salaries or wages by the employer and paid directly to the government. These can include income tax, social security, and Medicare taxes.

Federal Income Taxes

Federal income taxes are the taxes levied by the federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

Maximum Amount

The highest allowable or attainable value, level, or quantity of something.