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

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Definitions:

Goal Incongruence

A situation where the objectives of different stakeholders or parts of an organization conflict with each other, potentially leading to inefficiencies or counterproductive actions.

Cost Target

Cost target is the budgeted or desired cost of manufacturing a product or executing a project, aimed at ensuring competitiveness and profitability.

Responsibility Accounting

An accounting system focused on controlling costs and evaluating performance by assigning responsibility to individual managers or departments.

Benchmarks

Benchmarks are standard points of reference against which performance, quality, or value can be measured, often used for comparison in business, finance, and industry.