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

question 73

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
• E)$5,184.00

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Definitions:

Carrier

In automotive contexts, a component that holds the differential gear assembly in vehicles, allowing the transmission of power to the drive axles.

Input Member

A component in a mechanical system that receives power from an external source and transmits it to other parts of the system.

Gear Selector

A mechanism in vehicles that allows the driver to choose between different gears in a transmission, typically found in the form of a lever or electronic switch.