If John Makes Annual Year-End Payments of $8337

question 40

Multiple Choice

If John makes annual year-end payments of $8337.83 on a 20-year loan with an annual interest rate of 7.5 percent,what is the original principal amount for John's loan?

• A)$82 000
• B)$83 325
• C)$85 700
• D)$85 000

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Definitions:

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow positing that people are motivated to achieve certain needs and that some needs take precedence over others, from basic physiological needs to self-actualization.

Abraham Maslow

A psychologist renowned for establishing the hierarchy of needs according to Maslow, a concept of psychological well-being based on satisfying inborn human necessities.

Alfred Adler

An Austrian medical doctor and psychotherapist who founded the school of individual psychology, emphasizing the importance of feelings of inferiority and the creative self.