Gary Is Taking Out a $5,000 Loan for 1 Year

question 114

Multiple Choice

Gary is taking out a $5,000 loan for 1 year at an APR of 12%.His bank has offered him a loan using the add-on method.Using first the financial calculator method and the add-on method calculate Gary's monthly loan payment.

• A)$444.24;$466.67
• B)$475.00;$448.94

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's rapid involuntary response to dangerous or stressful situations.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy and promoting relaxation and recovery processes in the body.

Action Potential

A rapid increase and subsequent decrease in voltage or electrical charge across a cellular membrane, leading to nerve signal transmission.

Neural Impulse

An electrical signal that travels along a neuron, enabling communication within the nervous system.