You Borrow $50,000 on a Line of Credit to Finance

question 9

Multiple Choice

You borrow $50,000 on a line of credit to finance your start-up company, to be repaid in three equal, annual payments.Interest on the line of credit is 10% interest.Approximately how much of the principal is paid off on the first payment?

• A)$5000.00
• B)$16,666.67
• C)$15,105.74
• D)$20,105.74

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Definitions:

Executive Function

Executive Function encompasses the mental skills essential for planning, focus, remembering instructions, and multitasking; it manages thoughts, actions, and emotions.

Association

A cognitive connection between ideas, feelings, or memories.

Motor Areas

Regions of the brain responsible for the planning, control, and execution of voluntary movements.

Neuronal Pruning

The process by which extra neurons and synaptic connections are eliminated to increase the efficiency of neuronal transmissions.