Some Lending Institutions Calculate the Monthly Payment M on a Loan

question 13

Multiple Choice

Some lending institutions calculate the monthly payment M on a loan of L dollars at an interest rate r (expressed as a decimal) by using the formula: $M = \frac { L r k } { 12 ( k - 1 ) }$ where k = [1 + ( r / 12 ) ] ^12t and t is the number of years that the loan is in effect. An automobile dealer offers customers no-down-payment 8-year loans at an interest rate of 10%. If a customer can afford to pay $122 per month, find the price of the most expensive car that can be purchased.

• A) $ 8,050.00
• B) $ 8,045.62
• C) $ 8,039.98
• D) $ 8,048.79
• E) $ 8,029.63

Calculate the marginal product of labor given specific data sets.

Determine the average product under given conditions.

Identify the relationship between marginal product, total product, and average product.

Understand the principle of diminishing marginal returns.

---

Definitions:

Executive Branch

The branch of government responsible for implementing and enforcing laws, typically headed by the president or prime minister.

Administrative Agency

A government body responsible for implementing legislation and managing regulations within a particular area of government policy.

President's Veto Powers

The constitutional authority granted to the President to reject legislation passed by Congress, subject to an override by a two-thirds majority in both houses.

Arbitrary And Capricious

A standard for reviewing administrative and judicial decisions, referring to actions taken without reasonable justification or disregard for facts.