Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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What will be the monthly installment payment for a piano priced at $8997.40 with a $1000 down payment over 36 months?

$277.71
$376.89
$249.93
$222.15

The correct answer is: $222.15

To determine the monthly installment payment for the piano, you first need to calculate the total amount financed after the down payment. The piano costs $8,997.40, and with a down payment of $1,000, the amount to be financed is: $8,997.40 - $1,000 = $7,997.40. Next, this financed amount needs to be divided by the number of months over which it will be repaid, which is 36 months. The formula for calculating the monthly payment without interest is simply: Monthly Payment = Amount Financed / Number of Months. Using the numbers: Monthly Payment = $7,997.40 / 36 ≈ $222.15. This calculation reflects the principal repayment over the term of the loan, resulting in a monthly installment payment of approximately $222.15, which is the correct answer. It's important to note that this calculation assumes there are no additional finance charges or interest. If interest were considered, the monthly installment would be higher, but based on the information provided, the direct calculation leads to the correct answer of $222.15.