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:

Mixed Subsistence Strategy

A way of living that involves combining different methods of obtaining food, such as hunting, gathering, farming, and trading.

Geographical Region

A specific area or section of the world identified by physical, political, or cultural traits.

Industrial Food Production

Large-scale businesses involved in mass food production, processing, and marketing, which primarily rely on labor-saving machines.

Greatest Drawback

The most significant disadvantage or negative aspect associated with a particular situation, decision, or object.