Use the Information for the Question(s) Below

question 24

Multiple Choice

Use the information for the question(s) below.
Two years ago you purchased a new SUV. You financed your SUV for 60 months (with payments made at the end of the month) with a loan at 5.9% APR. Your monthly payments are $617.16 and you have just made your 24th monthly payment on your SUV.
-The amount of your original loan is closest to:

• A) $37,000
• B) $32,000
• C) $20,300
• D) $31,250

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not perfect substitutes, leading to some degree of market power.

Long Run

A period in economics where all factors of production and costs are variable, allowing for adjustments in production levels.

Profit-Maximizing

A strategy where a firm determines the price and production level that yields the highest possible profit.

Loss-Minimizing

A strategy aimed at reducing the negative impacts of business operations, often by cutting costs or improving efficiency.