Suppose You Borrowed $12,000 at a Rate of 9% and Must

question 81

Multiple Choice

Suppose you borrowed $12,000 at a rate of 9% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be?

• A) $3,704.02
• B) $3,889.23
• C) $4,083.69
• D) $4,287.87

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Definitions:

Secondary Changes

Consequential modifications or adjustments that occur as a result of primary actions or policies.

Federal Gasoline Tax

A tax imposed by the federal government on the sale of gasoline, used primarily to fund transportation projects.

General Equilibrium

A state in which all markets in an economy are in simultaneous equilibrium, with supply equaling demand in each market.

Normal Good

A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.