Fifteen Years Ago, You Borrowed $385,000 for 25 Years at 3.5

question 31

Multiple Choice

Fifteen years ago, you borrowed $385,000 for 25 years at 3.5% interest. What is the current principal balance, assuming payments are made monthly?

• A)$193,909
• B)$194,129
• C)$194,219
• D)$194,912
• E)$195,092

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Definitions:

Dividends

Money paid out to shareholders by a corporation, usually as a share of profits.

Retained Earnings

Profits that a company keeps or reinvests, rather than distributing to stockholders as dividends.

New Stock

Issuance of additional shares by a company to raise capital, which can dilute existing shareholders' ownership percentage.

New Equity

Capital raised by a company through the issuance of common or preferred stock, increasing the shareholders' equity.