Use the Information for the Question(s)below

question 26

Multiple Choice

Use the information for the question(s) below.
Two years ago, you purchased a new car. You financed your car for 60 months (with payments made at the end of the month) with a loan at 6.1% APR. Your monthly payments are $617.16 and you have just made your 24th monthly payment on your car.
-Assuming that you have made all of the first 24 payments on time, then the outstanding principal balance on your car loan is closest to:

• A)$20 256
• B)$20 200
• C)$20 250
• D)$20 365

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Definitions:

Owner's Right

The legal entitlements and privileges that come with owning an asset or property, including the right to use, rent, or sell it.

Financial Risk

The possibility of losing money on investments or business operations due to market fluctuations, interest rates, or credit issues.

Futures Contracts

Contracts that legally bind parties to purchase or sell a specific commodity or financial instrument for a set price on a future date.

Marked To The Market

Refers to the daily settling of gains and losses due to changes in the market value of a security, particularly relevant for futures contracts.