Mr Sanchez Bought a Tool Set for 12 Monthly Payments

question 16

Multiple Choice

Mr. Sanchez bought a tool set for 12 monthly payments of $45.78 each and a total finance charge of $62.89 He paid the tool set off 4 months early. What is the final payment?

• A) $222.53
• B) $243.50
• C) $251.56
• D) $377.34

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Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, remaining constant over a period of time such as rent or mortgage.

Variable Expenses

Costs that vary in proportion to the level of activity or volume of goods or services produced, such as utilities or credit card charges.

Students

Individuals who are engaged in learning, especially those who attend an educational institution.

Maximum Profit

The greatest difference between revenue and expense.