You Owe $4510 Due in 7 Months

question 17

Multiple Choice

You owe $4510 due in 7 months. In addition you owe $3780 due in 13 months and $5125 due in 21 months. You are paying 8.64% compounded monthly on your loan. What single amount three months from now will pay off the entire loan of the three future payments?

• A) $12 440.86
• B) $12 040.86
• C) $12 404.86
• D) $12 444.86
• E) $12 884.86

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Definitions:

Simplify

The process of reducing an expression or equation to its simplest form, making it easier to work with.

Percent

A percent is a part per hundred, used as a way of expressing a number as a fraction of 100.

Perimeter

The total distance around the boundary of a two-dimensional shape.

Rectangle

A quadrilateral with four right angles and opposite sides that are equal and parallel.