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

question 208

Multiple Choice

Find the amount of interest and the monthly payment for the loan described below. Round your answer to the nearest dollar. Purchased a stereo for $2,500 at 13% add-on interest for 3 years.

• A) \(\$ 1,107\) interest; \(\$ 100\) per month
• B) \(\$ 975\) interest; \(\$ 97\) per month
• C) \(\$ 975\) interest; \(\$ 100\) per month
• D) \(\$ 975\) interest; \(\$ 290\) per month
• E) \(\$ 1,107\) interest; \(\$ 97\) per month

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Definitions:

Procedural Unfairness

A situation where the methods or processes adopted in decision-making or dispute resolution are unjust or biased.

Dissatisfied

Feeling of discontent or displeasure resulting from unmet expectations or experiences, particularly in the context of products, services, or interpersonal relationships.

Equity Theory

A theory in social psychology that posits individuals are motivated by fairness in the rewards they receive for their efforts compared to others.

Process

A series of actions, changes, or functions that are intended to achieve a particular result.