Suppose That You Want to Purchase Some Land to Build

question 100

Multiple Choice

Suppose that you want to purchase some land to build a homestead in the future.You can afford payments of $5,000 each year and want to pay the loan back over the next 20 years.Assuming no down payment is required,how much can you borrow if the bank will charge you an annual interest rate of 12%?

• A)$100,985.45
• B)$48,231.47
• C)$37,347.22
• D)$160,262.21

---

Definitions:

Imports

Merchandise or services that are brought from one nation into another for retail purposes.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports, indicating a positive balance of trade.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to the exporting country's GDP.

Imports

Goods and services bought by a country from foreign markets.