John Doeber Borrowed $150,000 to Buy a House

question 68

Multiple Choice

John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. How much are the annual payments?

• A)$3,633
• B)$9,250
• C)$13,113
• D)$15,445

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Definitions:

Worker

An individual engaged in a specific activity or labor, especially for economic gain.

Credit Card

A card issued by a financial institution that allows the cardholder to borrow funds with which to pay for goods and services with the promise to repay these funds, plus any agreed charges.

Over-optimism

The tendency to overestimate the likelihood of positive outcomes in the future.

Consumer

An individual or group that purchases goods or services for personal use.