A House Costs $138,000

question 94

Multiple Choice

A house costs $138,000.It is to be paid off in exactly ten years,with monthly payments of $1675.What is the APR of this loan?

• A)7.52%
• B)7.80%
• C)8.00%
• D)8.33%

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Definitions:

Sales Increase

The rise in the quantity or revenue of products sold by a company over a specific period.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating how much sales can fall before a business incurs a loss.

Break-even Point

The level of sales at which profit is zero.

Degree of Operating Leverage

A ratio that measures how a percentage change in sales will affect profits, highlighting the impact of fixed costs on earnings.