Find the Amount of Interest and the Monthly Payment for the Loan

question 229

Multiple Choice

Find the amount of interest and the monthly payment for the loan described below. Round interest to the nearest dollar and monthly payment to the nearest cent. Purchased a gas barbeque for $2,150 at 13% add-on interest for 2 years.

• A) \(\$ 595\) interest; \(\$ 114.39\) per month
• B) \(\$ 559\) interest; \(\$ 225.75\) per month
• C) \(\$ 559\) interest; \(\$ 112.88\) per month
• D) \(\$ 595\) interest; \(\$ 112.88\) per month
• E) \(\$ 559\) interest; \(\$ 114.39\) per month

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Definitions:

Sales

Transactions or activities related to the selling of goods or services, generating revenue for a business.

Bad Debts

Money owed to a company that is unlikely to be paid by the debtor, considered as a loss to the company.

Uncollectible Accounts

Accounts receivable that have been deemed uncollectable from debtors, similar to bad debts but often considered as a specific stage in the collections process.

Pending Job

A task or project that has been initiated but is not yet completed or ready for execution.