Donna Makes Annual End of Year Payments of $5,403

question 14

Multiple Choice

Donna makes annual end of year payments of $5,403.71 on a four year loan with an interest rate of 13 percent.The original principal amount was: (Round to the nearest whole dollar)

• A) $16,073
• B) $22,139
• C) $15,092
• D) $17,175

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Definitions:

Inefficiency

A situation where resources are not used in the best possible way, often leading to wasted potential.

Monopoly

An economic setup where there is only one provider of a good or service, possessing total market control due to the lack of any similar alternatives.

Deadweight Loss

An economic inefficiency arising when there's a failure to attain the free market equilibrium for any product or service.

Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.