Assume That You Borrow $10,000 at an Annual Interest Rate

question 52

Multiple Choice

Assume that you borrow $10,000 at an annual interest rate of 6%. Your loan agreement calls for monthly payments of $200, which include both interest and principal. Your first payment is made one month after you received the loan. The amount of interest and principal applied to your first instalment, respectively, would be:

• A) $140 and $60.
• B) $150 and $50.
• C) $50 and $150.
• D) $60 and $150.

---

Definitions:

Margin of Error

The range within which the true value is expected to lie with a certain level of confidence, often used in survey results to indicate the precision of estimates.

Grade Point Averages

A numeric calculation, weighted by credit hours, of the mean of the grades received over a defined period, scaled typically from 0.0 to 4.0.

College Students

Individuals enrolled in institutions of higher education to pursue degree programs.

Sampling Distribution

Statistical probability distribution resulting from a random sampling.