Jackson Purchased a $40,000 Sports Car Through a 60 Month

question 39

Multiple Choice

Jackson purchased a $40,000 sports car through a 60 month financing plan.The interest rate was 4.95% compounded monthly.At the end of year 3, Jackson wanted to pay off the outstanding balance.Determine the amount that must be paid off by Jackson

• A)$11,194
• B)$14,194
• C)$17,194
• D)$20,194

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Definitions:

Contractual Liabilities

Obligations that a party is bound to fulfill according to the terms of a contract.

Definiteness Standards

Legal criteria used to evaluate the clarity and specificity of contract terms, ensuring that all essential terms are clear enough to enforce the agreement.

Classical Contract Law

This term describes a legal framework that emphasizes freedom of contract, where contracts are agreements entered into voluntarily by the parties and are enforceable by law.

Binding Contract

An agreement between parties that is legally enforceable and has all the essential elements of a contract.