A House Is for Sale for $250,000

question 4

Multiple Choice

A house is for sale for $250,000.You have a choice of two 20-year mortgage loans with monthly payments: (1) if you make a down payment of $25,000,you can obtain a loan with a 6% rate of interest or (2) if you make a down payment of $50,000,you can obtain a loan with a 5% rate of interest.What is the effective annual rate of interest on the additional $25,000 borrowed on the first loan?

• A)1.00%
• B)6.00%
• C)12.95%
• D)18.67%

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Definitions:

Equestrian Centers

Facilities specifically designed for the training, boarding, and competition of horses and riders.

Environmental Responsibility

An ethical stance where individuals and organizations act to protect the environment and minimize harm to it through their actions and policies.

Positive Business

Practices and strategies adopted by companies aiming to contribute positively to society, the environment, and the economic system.

Balances Interests

The act of equitably considering and addressing multiple stakeholders’ concerns and priorities.