You Want to Borrow $40,000 from Your Local Bank to Buy

question 42

Multiple Choice

You want to borrow $40,000 from your local bank to buy a new sailboat.You can afford to make monthly payments of $775,but no more.Assuming monthly compounding,what is the highest rate you can afford on a 60-month APR loan?

• A)5.9 percent
• B)6.0 percent
• C)6.1 percent
• D)6.2 percent
• E)7.2 percent

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Definitions:

Pedometer

A device that counts the number of steps taken by the wearer, often used to monitor physical activity levels.

Somewhat Active

Describes an individual’s lifestyle or level of physical activity that is more than sedentary but less than highly active.

Average Steps

A metric used to quantify the typical number of steps taken by an individual or population over a certain period, often used in health and fitness assessments.

Poor Air Quality

A condition where the air contains pollutants at levels harmful to health, leading to respiratory issues and other diseases.