Four Years Ago, You Borrowed $250,000 for 20 Years at 8

question 67

Multiple Choice

Four years ago, you borrowed $250,000 for 20 years at 8%. Payments are made monthly. How much interest have you paid thus far?

• A)$74,222
• B)$75,756
• C)$75,909
• D)$76,456
• E)$77,121

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Definitions:

Consumes

The act of using up a resource or goods in the process of satisfying human needs or wants.

Utility Function

A utility function is a mathematical representation that assigns a level of utility or satisfaction to combinations of goods and services consumed.

Income

Refers to the income earned, either periodically or consistently, from employment or investment ventures.

Utility Function

A mathematical expression that ranks preferences over a set of goods or outcomes, representing satisfaction or happiness derived from consumption.