Sam Jones Has an Engineering Firm

question 50

Multiple Choice

Sam Jones has an engineering firm.He wants to build a new headquarters building.The building will cost $1,500,000.He will put down $450,000 and have a bank finance the remainder at prime plus 2 percent.The prime lending rate is currently 8.5 percent.Sam will withdraw the money for the down payment from his mutual fund account where he has earned 13% for the last ten years.What percentage of the building is being equity financed?

• A)30%
• B)10.5%
• C)13%
• D)70%

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Definitions:

Negative Emotions

Emotional states that are considered to be unpleasant or undesirable, such as sadness, anger, fear, or anxiety.

Anticipatory Smiling

A social signal where an individual smiles in anticipation of a positive interaction.

Infant

A baby or small child, usually not yet a year old.

Strange Situation

A procedure developed by psychologist Mary Ainsworth to assess attachment styles in children by observing their reactions to separations and reunions with their caregiver.