Assuming That You Can Afford a Car Payment of $400

question 56

Multiple Choice

Assuming that you can afford a car payment of $400 for 36 months,which of the following is closest to the annual interest rate you would need on a loan to borrow $12,000 for a new car?

• A)10.99 percent
• B)11.26 percent
• C)12.25 percent
• D)12.99 percent

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Definitions:

Long-held Beliefs

Ideas or convictions that have been accepted and maintained over an extended period.

Traditional Authority

A form of leadership in which the authority of an organization or a ruler is largely tied to tradition or custom.

Rational

Pertains to decision-making processes that are based on logical reasoning and systematic analysis of alternatives.

Charismatic

Describes a person or quality that is compellingly attractive and inspiring due to an exceptional ability to influence and arouse enthusiasm.