Given the Following Information on a 30-Year Fixed-Payment Loan,determine the Remaining

question 7

Multiple Choice

Given the following information on a 30-year fixed-payment loan,determine the remaining balance that the borrower has at the end of seven years.Interest Rate: 7%,Monthly Payment: $1,200.

• A)$17,143
• B)$79,509
• C)$164,402
• D)$180,369

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Definitions:

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to allocate resources in a certain way.

Marginal Cost

The cost increase associated with the manufacture of an additional good or service unit.

P = MC

An equation denoting the condition where the price of a good equals its marginal cost, typically associated with perfect competition and profit maximization.

Consumer Surplus

The difference between the total amount consumers are willing to pay for a good or service and the total amount they actually pay.