You Would Like to Buy a Harley Davidson and You

question 6

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 48 months and the loan rate is 9% (APR) ,then what is the maximum that you can pay for the motorcycle?

• A) $55,043.91
• B) $53,043.91
• C) $51,043.91
• D) $41,509.78
• E) $42,095.71

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Base Pay Method

A compensation approach that determines the initial salary offered to an employee, not including extra forms of compensation like bonuses or overtime.

Market Pricing

The process of determining the salary levels and ranges for positions within a company by comparing them with similar jobs in the external labor market.

Job Evaluation

A systematic process for determining the relative value or worth of a job in an organization, which helps to establish fair compensation.