Use Estimation to Select the Best Response

Multiple Choice

Use estimation to select the best response. Do not calculate. Assume that there is an (unknown) interest rate that is charged. If you purchase an item for $3,600 and pay for it with monthly installments for 4 years, the monthly payment is ________.

A) $75 per month
B) less than $75 per month
C) $300 per month
D) more than $300 per month
E) more than $75 per month and less than $300 per month