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Charles Carr Borrowed $3,500 to Consolidate His Debts

Question 19

Multiple Choice

Charles Carr borrowed $3,500 to consolidate his debts. Since Charles had an excellent credit rating, he was able to borrow at a 12% effective annual rate. Charles is required to make monthly payments. Charles will make equal payments for the next 36 months. Which one of the following values is closest to his monthly payments?


A) $121
B) $122
C) $115
D) $118
E) $123

Correct Answer:

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