Matthew Wants to Take Out a Loan to Buy a Car.He

question 53

Multiple Choice

Matthew wants to take out a loan to buy a car.He calculates that he can make repayments of $4000 per year.If he can get a five-year loan with an interest rate of 7.5%,what is the maximum price he can pay for the car?

• A)$16,184
• B)$18,243
• C)$20,324
• D)$21,674

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Definitions:

Legal

Pertaining to the law or its practices, adhering to the rules and guidelines recognized by governmental and judicial systems.

Enforceable

Capable of being compelled or ensured compliance, especially by legal or police action.

Wagered

The act of betting or staking something of value on the outcome of an event or a situation, often involving a degree of risk.

Stop Payment

An order given to a bank by an account holder not to pay a check or payment that has been issued but not yet processed.