Your Company Is Planning to Borrow R1,000,000 on a 5-Year

question 68

Multiple Choice

Your company is planning to borrow R1,000,000 on a 5-year, 15 percent, annual payment, fully amortised term loan.What fraction of the payment made at the end of the second year will represent repayment of principal?

• A) 29.83%
• B) 57.18%
• C) 35.02%
• D) 64.45%
• E) 72.36%

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Definitions:

Leibniz

A German polymath and philosopher, who made significant contributions to mathematics, metaphysics, and logic, known for his optimism and the concept of monads.

Berkeley

An Irish philosopher of the early modern period known for his theory of immaterialism, which denied the existence of material substance in favor of the perception of such.

Democritus

An ancient Greek philosopher and a central figure in the development of the atomic theory of the universe.

Atoms

The smallest units of matter, consisting of a nucleus surrounded by electrons, which form the basic building blocks of all chemical elements.