On the Day You Entered College You Borrowed $30,000 from Your

question 132

Multiple Choice

On the day you entered college you borrowed $30,000 from your local bank.The terms of the loan include an interest rate of 4.75 percent.The terms stipulate that the principal is due in full one year after you graduate.Interest is to be paid annually at the end of each year.Assume that you complete college in four years.How much total interest will you pay on this loan?

• A)$7,266.67
• B)$7,400.00
• C)$7,125.00
• D)$8,529.00
• E)$8,607.11

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Definitions:

Secondary Circuit

In electrical systems, a secondary circuit is a part of the circuit that is downstream from the transformer or another isolation device, which operates at a lower voltage than the primary circuit.

Tandem Drive Axle

A configuration involving two drive axles placed in line with each other, used in heavy vehicles to support more weight and improve traction.

Service Braking

The primary braking system used in vehicles for regular stopping and speed control, as opposed to auxiliary or emergency braking.

Scenario Analysis

The determination of what happens to NPV estimates when we ask what-if questions.