Given the Following Information on a Fixed-Rate Fully Amortizing Loan

question 1

Multiple Choice

Given the following information on a fixed-rate fully amortizing loan, determine the maximum amount that the lender will be willing to provide to the borrower. Loan Term: 30 years, Monthly Payment: $800, Interest Rate: 6%.

• A) $6,707
• B) $9,295.15
• C) $13,333
• D) $133,433

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Definitions:

Atoms

The basic units of matter consisting of a nucleus surrounded by electrons, forming the building blocks of all substances.

Element

A pure chemical substance consisting of one type of atom, distinguished by its atomic number.

Electrolytes

Minerals in the body that have an electric charge, such as sodium, potassium, calcium, and magnesium, and are vital for numerous bodily functions including fluid balance and nerve transmission.

Water

Water is a transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's streams, lakes, and oceans, and the fluids of most living organisms.