Joseph Buys a Hummer for $60,000,financing It with a Five-Year

question 109

Multiple Choice

Joseph buys a Hummer for $60,000,financing it with a five-year 6.5% APR loan paid monthly.He decides to pay an extra $50 per month in addition to his monthly payments.Approximately how long will he take to pay off the loan under these conditions?

• A)4 years 10 months
• B)4 years 9 months
• C)4 years 6 months
• D)4 years 4 months
• E)5 years

---

Definitions:

Primary Business

The main activity or category of activities a company engages in to generate the bulk of its revenue.

Operating Activities

Activities that constitute the primary or main activities of a company, such as production, distribution, marketing, and sale of goods or services.

Journal

In accounting, a record where all financial transactions are initially noted before being entered into the company's general ledger.

Reports Center

A dedicated area within a software application or platform where users can create, manage, and view various reports related to their data.