John Buys a Car for $20 000 on Kia Finance

question 80

Multiple Choice

John buys a car for $20 000 on Kia finance with a simple interest of 5.99%. After one month he pays off the Kia finance using his secured line of credit which charges him 4% simple interest. He pays off the line of credit in 11 months. How much did he pay in total?

• A) $20 737
• B) $20 837
• C) $20 733
• D) $20 800
• E) $21 198

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Definitions:

Direct Labour-hours

The total hours worked by employees directly involved in the manufacturing process.

Work in Process

Items that are in the process of being manufactured but are not yet complete.

Work in Process

Also known as work in progress, it denotes the cost of unfinished goods in manufacturing at any given time.

Direct Labour Cost

The wages paid to workers who are directly involved in the manufacturing or production process.