Use Estimation to Select the Best Response

question 38

Short Answer

Use estimation to select the best response. Do not calculate. Assume that interest rates are close to 10%.
If you purchase a new car for $12,000, and finance it for 1 year, then the amount of interest you would expect to pay is about:
Choose 120, 1,200, or 6,000.
$ __________

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Definitions:

Industrial Regulation

Governmental regulation of industries to correct market failures, protect consumers, and preserve competitive markets.

Social Regulation

Rules and policies designed to correct market failures that affect people's health, safety, welfare, and social wellbeing.

Administrative Costs

Administrative Costs are expenses related to the general operation of a business, including expenses such as office supplies, salaries of non-production employees, and legal and accounting services.

Compliance Costs

Expenses that businesses incur to adhere to industry regulations, standards, and laws, including the costs of implementing necessary procedures and reporting.