A Pottery Factory Purchases a Continuous Belt Conveyor Kiln for $68,000

question 105

Multiple Choice

A pottery factory purchases a continuous belt conveyor kiln for $68,000. A 6.3% APR loan with monthly payments is taken out to purchase the kiln. If the monthly payments are $765.22, over what term is this loan being paid?

• A) 8 years
• B) 9 years
• C) 10 years
• D) 11 years

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Definitions:

Absolute Liability

A legal doctrine holding a person or entity responsible for damages or loss regardless of fault or intent.

Motel

A roadside hotel designed primarily for motorists, typically having the rooms arranged in a low building with parking directly outside.

Lightning

A natural phenomenon involving a sudden electrostatic discharge during a storm, resulting in a bright flash and typically thunder.

Liable

Legally responsible or obligated to compensate for harm or damages caused.