A Homeowner Has Five Years of Monthly Payments of $1400

question 54

Multiple Choice

A homeowner has five years of monthly payments of $1400 before she has paid off her house.If the interest rate is 7% APR,what is the remaining balance on her loan?

• A)$59,890
• B)$64,918
• C)$70,703
• D)$84,000

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Definitions:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Point A

Typically used as a reference point in diagrams or illustrations in economics or geometry.

Opportunity Cost

The dues for not selecting the following most suitable option when making decisions.

Point D

Another specific point on a graph or economic model, indicative of a different state or condition than Point C, useful in comparative analysis.