Joseph Buys a Jeep for $60 000, Financing It with a Five-Year

question 75

Multiple Choice

Joseph buys a Jeep for $60 000, financing it with a five-year 6.5% APR loan paid monthly. He decides to pay an extra $50 per month in addition to his monthly payments. Approximately how long will he take to pay off the loan under these conditions?

• A)4 years, 9 months
• B)4 years, 4 months
• C)4 years, 10 months
• D)4 years, 6 months

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Definitions:

Life Expectancy

The average period a person is expected to live, based on demographic factors such as current age, gender, and health conditions.

Benefit Formula

A method used to calculate the amount of benefits, such as pensions, insurance payouts, or social security, based on factors like income, years of service, or contributions.

Tax Rates

The percentages at which income or value is taxed by governmental authorities, varying by income level, product type, or activity being taxed.

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding direct labor and materials.