What Amortization Payment Would You Need to Make Each Year

question 93

Multiple Choice

What amortization payment would you need to make each year, at 12% interest compounded annually, to pay off a loan of $4,000 in 6 years? (Use Table 12-2 from your text)

• A) $477.11
• B) $486.45
• C) $972.90
• D) $954.22

---

Definitions:

Jargon

Specialized terminology used within a specific profession, industry, or group, often difficult for outsiders to understand.

Communication Efficiency

The effectiveness with which information is conveyed with minimal use of resources, effort, and time, while maximizing comprehension and impact.

Active Listening

The practice of fully concentrating on what is being said rather than passively hearing the message of the speaker.

Develop An Opinion

The process of forming a belief or judgment based on the evaluation of evidence and information.