Appalachian Bank Offers You a $135,000, 9-Year Term Loan at 7.5

question 9

Multiple Choice

Appalachian Bank offers you a $135,000, 9-year term loan at 7.5 percent annual interest. What will your annual loan payment be?

• A) $18,507.16
• B) $19,229.08
• C) $20,660.02
• D) $20,889.20
• E) $21,163.57

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Definitions:

Semi-annual

Occurring twice a year; pertaining to events, reports, payments, or dividends that happen or are issued every six months.

Yield to Maturity

The overall anticipated gain on a bond if retained until its expiration date.

Bearer Bond

A bearer bond is a type of fixed-income security that is not registered in the owner's name, allowing the holder of the document to collect the interest and principal payments.

Registered

This can refer to securities, companies, or assets that have been officially recorded and recognized by regulatory authorities.