A Borrower Pays $555

question 8

Short Answer

A borrower pays $555.20 interest in the first year on a mortgage of $6,940. What is the rate of interest?

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Definitions:

Business Risk

The exposure a company or investor faces from the uncertainties that could affect the financial, operational, and reputational standing of a business.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.

Fixed Salary

A consistent set amount of pay received by an employee, typically on a monthly or bi-monthly basis, regardless of hours worked.

Business Risk

The potential for a company to experience losses or fail to achieve its financial goals due to economic conditions, operational issues, or other unforeseen factors.