You Would Like to Buy a Harley Davidson and You

question 62

Multiple Choice

You would like to buy a Harley Davidson and you can afford to make a down payment of $2,000 and pay monthly (end-of-month) payments of $1,320.If the term is 36 months and the loan rate is 9% (APR) ,then what is the maximum that you can pay for the motorcycle?

• A) $43,509.78
• B) $41,509.78
• C) $39,509.78
• D) $40,095.71
• E) $42,095.71

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Definitions:

Karl Pearson

A British mathematician and biometrician known for founding the discipline of mathematical statistics.

Product-moment

Refers to a correlation coefficient developed by Karl Pearson that measures the strength and direction of a linear relationship between two variables.

Negative Correlation

A linkage between two variables that shows one increasing while the other decreases.

Coefficient of Alienation

A statistical measure that represents the amount of variation in one variable that is not accounted for by its relationship with another variable.