Sam Took Out a 30-Year, $450,000, 4

question 79

Multiple Choice

Sam took out a 30-year, $450,000, 4.125% loan 10 years ago. What is Sam's current principal balance, assuming that he makes monthly payments?

• A)$354,930
• B)$355,130
• C)$355,394
• D)$355,910
• E)$356,019

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Definitions:

Retained Earnings

Accumulated net income that has been retained by a company rather than distributed to its owners as dividends.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interest in the company.

Cost Method

An accounting method used to record investments, where the investment is recorded at its acquisition cost without adjusting for changes in market value.

Investment Account

An Investment Account is a financial account held by an investor with a brokerage firm, bank, or custodian that holds securities and other investments.