You Plan to Borrow $75,000 at a 7% Annual Interest

question 44

Multiple Choice

You plan to borrow $75,000 at a 7% annual interest rate.The terms require you to amortize the loan with 10 equal end-of-year payments.How much interest would you be paying in Year 2?

• A)$4,395.19
• B)$4,626.52
• C)$4,870.02
• D)$5,113.52

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Definitions:

Promissory Estoppel

A legal principle preventing someone from arguing that an unenforceable promise they made should not be upheld, because the other party relied on that promise to their detriment.

UCC

All commercial activities in the United States are subject to the intricate legal structure of the Uniform Commercial Code.

Promissory Estoppel

A legal concept that bars a person from canceling a promise made to someone else if that individual has sensibly relied on the promise to their misfortune.

Contract

A contract between two or more parties that is recognized and enforceable under the law.