Mantago Wants to Borrow $10,000 to Buy a Used Car

question 32

Multiple Choice

Mantago wants to borrow $10,000 to buy a used car.He examined his budget and decided that he can afford a payment of $200 a month.If his bank offers him an APR of 7.5%,how long should he borrow the money so he can afford his monthly payment?

• A) 3.5 years
• B) 4 years
• C) 4.5 years
• D) 5 years

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Definitions:

Marketable Securities

Financial instruments that are easily convertible into cash at close to their original value, often used for short-term investments.

Accounts Payable

Accounts payable is the amount of money that a company owes to its suppliers or creditors for goods and services received but not yet paid for, typically due within a short period, like 30 or 60 days.

Use of Cash

Refers to how a business or individual employs their cash resources, including spending, investing, or saving activities.

Inventory Holdings

The quantity of goods or materials in stock by a business awaiting sale or use.