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:

Petty Offense

A minor legal violation that is less serious than a misdemeanor.

Infraction

A minor violation or breach of law, typically not punishable by imprisonment.

Misdemeanor

A criminal offense that is less severe than a felony and usually punishable by fines or short-term imprisonment.

Misdemeanor

A criminal offense less severe than a felony, usually punishable by a fine or short-term imprisonment.