How Much Total Principal Is Repaid Between the 1st and 7th

question 129

Multiple Choice

How much total principal is repaid between the 1st and 7th payment interval of a 4.5-year loan for $4887 at an interest rate of 7.4% compounded monthly and the payments are also monthly. Round your answer to the nearest dollar.

• A) $556
• B) $546
• C) $456
• D) $445
• E) $423

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Definitions:

Repairs and Maintenance Expense

Costs incurred to keep property, plant, and equipment in efficient operating condition.

Legal Fees

Charges for services related to legal advice, representation, and legal document preparation by attorneys.

Delinquent Taxes

Taxes that have not been paid by the due date, often subject to penalties and interest charges.

Short-Term Note

A debt instrument or loan with a maturity of less than one year, often used for immediate financing needs.