What Is the Amount of Interest and Repayment of Principal

question 54

Multiple Choice

What is the amount of interest and repayment of principal balance in month 2 for a loan of $10,000, paid monthly over five years at a 7 percent APR?

• A) Interest = $101.32, Principal repayment = $57.51
• B) Interest = $57.52, Principal repayment = $140.49
• C) Interest = $157.52, Principal repayment = $40.49
• D) Interest = $107.52, Principal repayment = $40.49

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Definitions:

Unemployment

The situation where individuals who are willing and able to work are unable to find employment.

Capital

Financial assets or the financial value of assets, such as cash and goods, used by a business to generate wealth through investment or production.

Natural Resources

Materials or substances that occur in nature and can be used for economic gain, such as minerals, forests, water, and fertile land.

Opportunity Cost

Missing potential improvements from other opportunities when a particular alternative is chosen.