Question
Determine whether the statement is true or false. If the statement is false, make the necessary change(s) to produce a true statement. The interest on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan. Choose the correct answer below. A. The statement is true. B. The statement is false. The principal on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan. C. The statement is false. The annual rate on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan. D. The statement is false. The monthly payment on a car loan can be determined by taking the difference between the total of all monthly payments and the amount of the loan.
Answer
4.4
(300 Votes)
Preston
Elite · Tutor for 8 years
Answer
### A. The statement is true.
Explanation
## Step 1: Formation of Statement for Interest Calculation### The interest on a car loan is calculated by subtracting the principal (original loan amount) from the total repayment amount (sum of all monthly payments).## Step 2: Verification of Statement### Compare the provided statement with the correct interest calculation method.## Step 3: Determining Veracity### Evaluate if the provided statement is true or if a correction is needed.