Suppose You Borrowed $15,000 at a Rate of 8

question 95

Multiple Choice

Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years.By how much would you reduce the amount you owe in the first year?

• A) $2,404.91
• B) $2,531.49
• C) $2,658.06
• D) $2,790.96
• E) $2,930.51

---

Definitions:

Semiconductor Chip

A small electronic device made of semiconductor material, used in a wide array of electronic circuits and devices for processing or controlling electrical signals.

Technological Improvements

Innovations and advancements in technology that enhance productivity, efficiency, and quality of goods and services.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Average Product

The output per unit of input, such as labor or capital, calculated by dividing total output by the total quantity of the input.