If a Person Is Going to Borrow $30,000 for a Car

question 45

Multiple Choice

If a person is going to borrow $30,000 for a car and pay it off in monthly payments of $500 for 5 years the internal rate of return is

• A)0%.
• B)5%.
• C)10%.
• D)15%.

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Definitions:

Journal Entry

A record in accounting that represents a transaction and its effect on various accounts within the financial statements.

Trading Securities

Financial instruments held by a firm for the purpose of short-term profit through trading on a stock exchange.

Sale

The act of selling a product or service in exchange for money or other compensation.

Equity Securities

Financial instruments that represent ownership interest in a company, such as stocks.