Kevin Bought a New Car for $22,000

question 67

Multiple Choice

Kevin bought a new car for $22,000. He made a down payment of $7,000 and has monthly
Payments of $369.72 for 4 years. He is able to pay off his loan at the end of 30 months. Using the
Actuarial method, find the unearned interest and payoff amount.

• A)u = $427.22; payoff amount: $6,597.46
• B)u = $427.22; payoff amount: $7,024.66
• C)u = $469.94; payoff amount: $5,937.69
• D)u = $469.94; payoff amount: $7,257.18

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Definitions:

External Cultural Tools

Objects, texts, or technological systems that carry cultural meaning and can be used to communicate, solve problems, or create art.

Early Scripts

Rudimentary forms of writing or a set of presets for behavior and thought patterns acquired early in life.

Preoperational Stage

A stage in Jean Piaget's theory of cognitive development, occurring roughly between the ages of 2 and 7, characterized by symbolic thinking, egocentrism, and a lack of logical operations.

Cognitive Development

The process through which a person learns to think, reason, and use language, which plays a critical role in understanding, processing, and responding to the environment.