A Loan of $A Is Taken Out and Is to Be

question 17

Multiple Choice

A loan of $A is taken out and is to be repaid with level monthly payments over n-years at j₁₂ = 18%.The outstanding balance after 75 payments is $16,855.14 and after 76 payments is $16,590.17.What is the monthly payment?

• A)$252.83
• B)$264.97
• C)$513.82
• D)D)$517.80

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Definitions:

Total Revenue

The total amount of money generated by a company from its business activities, before any expenses are subtracted.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production or sales, such as materials and labor.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax.