Ursula Wants to Buy a $18,999 Used Car

question 18

Multiple Choice

Ursula wants to buy a $18,999 used car.She has savings of $2,000 plus an $800 trade-in.She wants her monthly payments to be about $272.Which of the following loans offers monthly payments closest to $270?

• A)6.5% APR for 36 months
• B)6.5% APR for 48 months
• C)6.5% APR for 60 months
• D)6.5% APR for 72 months

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Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Raw Materials

Basic, unprocessed inputs used in manufacturing or production processes to create finished goods.

Indirect Materials

Materials used in the production process that cannot be directly traced to a finished product.

Employer Payroll Taxes

Taxes that employers are required to pay on behalf of their employees, including Social Security and Medicare taxes in the United States.