A Few Years After Graduating from College,you Decide to Get

question 101

Multiple Choice

A few years after graduating from college,you decide to get an MBA.This endeavor sets you back $100,000 in loans.Luckily,you have the option to consolidate these loans at 5%.You opt for a 30-year payback period with monthly installments due at the end of each month.What is the monthly payment on the consolidated loan?

• A) $536.82
• B) $542.10
• C) $544.86
• D) $3,552.94

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Definitions:

Uncollectible Accounts Receivables

Accounts receivable that a company does not expect to collect and must write off as a loss because the debtor is unable to pay the owed amount.

Merchandise

Goods that are bought and sold in business; the commodities or items that a business trades in.

Journal Entry

A record in the books of accounts that represents a single financial transaction, documented in chronological order and showing the debits and credits for each transaction.

Terms N/30

Payment terms indicating that an invoice must be paid within 30 days of the invoice date.