A Truck Costing $112,000 Is Paid Off in Monthly Installments

question 55

Multiple Choice

A truck costing $112,000 is paid off in monthly installments over four years with 8% APR.After three years the owner wishes to sell the truck.What is the closest amount from the following list that he needs to pay on his loan before he can sell the truck?

• A)$24,867
• B)$28,678
• C)$31,432
• D)$87,255

---

Definitions:

Accounts Receivable

Accounts receivable is the balance of money due to a firm for goods delivered or services provided but not yet paid for by customers.

Bought Supplies

The action of acquiring supplies for a business or personal use, often recorded as an expense.

Equipment

Items of property intended for long-term use in the operation of a business, such as machinery and furniture.