Your Company Is Planning to Borrow $1,000,000 on a 5-Year,15

question 76

Multiple Choice

Your company is planning to borrow $1,000,000 on a 5-year,15 percent,annual payment,fully amortized 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%

---

Definitions:

Federal

Pertaining to the central government of a country as opposed to local or state governments.

Legislation

The body of laws and regulations enacted by a government or legislative body to govern behavior and actions within a society.

Repetitive Strain Injuries

Physical injuries that result from overuse of particular parts of the body, often caused by repetitive tasks or poor ergonomics.

Ergonomic Principles

Guidelines designed to improve comfort, efficiency, and safety in the design of workplaces, tools, and tasks, by considering human physical and psychological capabilities and limitations.