The Monthly Payment (Rounded to the Nearest Dollar)on an 8

question 33

Multiple Choice

The monthly payment (rounded to the nearest dollar) on an 8%, 36-month, add-on loan of $10,000 would be:

• A)$278.
• B)$300.
• C)$314.
• D)$344.
• E)$380.

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Definitions:

Alteration

An unauthorized change to an instrument that modifies the obligation of a party to the instrument.

Promissory Note

A written promise to pay a specified sum of money to a certain individual or entity at a specified time or on demand.

Fictitious-Payee Rule

A principle in commercial law that a bank is not liable for fraudulent endorsement payments if the drawer intended the payee to be fictitious.

Refund

The process of returning funds to a purchaser in response to a product return, cancellation, or dissatisfaction with services provided.