The Value of a Loan of $50,000 After a Year

question 96

Multiple Choice

The value of a loan of $50,000 after a year at 2 percent interest is:

• A) $1,000.
• B) $52,000.
• C) $49,000.
• D) None of these is true.

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Definitions:

Primary

The initial or most important in order of development or consideration.

Distribution Transformer

A transformer used in electrical power distribution to step down voltage levels from high to lower levels for consumer use.

Control Transformer

A transformer used to provide a stable voltage supply to control devices in electrical circuits, isolating them from the main power circuit.

Inrush Current

The amount of current that is drawn when an inductive device is first connected to the power line.