A Bank Offers a Home Buyer a 25-Year Loan at 8

question 24

Multiple Choice

A bank offers a home buyer a 25-year loan at 8% per year.If the home buyer borrows $120,000 from the bank,how much must be repaid every year?

• A)$7896.45
• B)$9845.89
• C)$10,786.66
• D)$11,241.45

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Definitions:

Team Members

Individuals who are part of a group working together towards a common goal or project, each contributing with their specific roles and responsibilities.

Marginal Revenue

The additional revenue that a firm gains from selling one more unit of a good or service.

Monopoly

A market structure where a single firm or entity exclusively controls the supply of a particular good or service, limiting competition.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.