Suppose You Borrowed $14,000 at a Rate of 10

question 65

Multiple Choice

Suppose you borrowed $14,000 at a rate of 10.0% and must repay it in 5 equal installments at the end of each of the next 5 years.How much interest would you have to pay in the first year?

• A) $1,200.33
• B) $1,263.50
• C) $1,330.00
• D) $1,400.00
• E) $1,470.00

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Definitions:

Post Hoc

Short for post hoc ergo propter hoc, a logical fallacy implying that since one event follows another, the first event must be the cause of the second.

Fallacy

A deceptive, misleading, or false notion or argument, often used in the context of logical reasoning or debate.

Occurred

An event or action that took place or happened, usually at a specific time and place.

False Alternative

A logical fallacy that presents a limited set of options when, in fact, more options exist.