A Small Business Repairs Its Store

question 23

Multiple Choice

A small business repairs its store. The builders charge them $130,000 which will be paid back in monthly installments over three years at 6.80% APR. The builders will reduce this rate to 6.30% APR if they pay $2600 up front. By approximately how much will this reduce the monthly loan repayments?

• A) $109
• B) $218
• C) $164
• D) $55

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Definitions:

Preliminary Emancipation Proclamation

An executive order issued by President Abraham Lincoln in 1862, announcing the future emancipation of all slaves in any state of the Confederate States of America that did not return to Union control.

Abolitionists

Individuals and groups who advocated for the immediate end of slavery before and during the 19th century in the United States.

Military Victory

The achievement of strategic objectives in a battle or war, typically marked by the defeat of enemy forces or the attainment of a military goal.

Federal Policy

A set of principles and laws formulated by the national government that guide decision-making and influence the country's direction.