A Bank Is Negotiating a Loan

question 65

Multiple Choice

A bank is negotiating a loan.The loan can either be paid off as a lump sum of $100,000 at the end of five years,or as equal annual payments at the end of each of the next five years.If the interest rate on the loan is 10%,what annual payments should be made so that both forms of payment are equivalent?

• A)$12,000
• B)$16,380
• C)$19,588
• D)$20,000

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Definitions:

Therapeutic Stance

The mental and emotional position adopted by a therapist during treatment, characterized by empathy, neutrality, and supportiveness.

Listener

An individual who gives attention to sound or speech, engaging in the process of actively receiving and interpreting messages.

Resistant Behaviors

Actions or attitudes displayed by individuals or groups that hinder or oppose change, guidance, or direction.

Nonjudgmental

An attitude or approach that avoids making judgments, particularly those based on personal biases or without full understanding.