You Have to Make a Balloon Payment on Your House

question 49

Multiple Choice

You have to make a balloon payment on your house five years from now of $15,000. If money can earn an average of 6 percent a year for the five -year period, how much interest will you earn on your deposit in five years?

• A) $3,791.13
• B) $3,807.00
• C) $5,073.00
• D) $5,101.50

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Definitions:

Double Marginalization

A situation in a supply chain where both the manufacturer and the retailer mark up prices, leading to higher costs for consumers.

Directly To The Consumer

A business model where companies sell their products or services directly to consumers, bypassing any intermediaries or retailers.

Merge

To combine two or more entities into one, often referring to companies or datasets, resulting in integrated operations or information.

Promotional Activities

Marketing efforts designed to communicate the value of a product or service to customers to boost sales.