You Are Thinking About Buying a New Car and Will

question 76

Multiple Choice

You are thinking about buying a new car and will borrow $20,000 for this purchase at a 5 percent fixed rate for exactly one year.The lender (correctly) assumes that inflation will be 2 percent this year.Based on the above information and assuming you adhere to the terms of the loan,you will pay back the lender exactly ________,which will represent ________ of purchasing power.

• A) $20,000; $19,000
• B) $21,000; $21,000
• C) $21,000; $21,400
• D) $21,000; $20,600
• E) $19,600; $20,000

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Definitions:

Costs and Benefits

An analysis or consideration of the expenses associated with an action versus the advantages gained from that action.

Agency Staff

Workers or personnel employed through or by a staffing agency, often for temporary or contract positions.

Community

A community is a group of individuals who share common interests, values, or geographical location, and interact with each other to fulfill mutual needs.

Potential Members

Individuals who may become part of a group, organization, or community based on certain qualifications or criteria.