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 $1,195.95 and pay for it with monthly installments for 4 years, the monthly payment is ______.

A) about $25 per month
B) more than $100 per month
C) more than $25 per month and less than $100 per month
D) about $100 per month
E) less than $25 per month