Dan Buys a Property for $210,000

question 59

Multiple Choice

Dan buys a property for $210,000. He is offered a 30-year loan by the bank, at an interest rate of 8% per year. What is the annual loan payment Dan must make?

• A) $18,653.76
• B) $22,384.51
• C) $26,115.26
• D) $29,846.02

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock rather than cash.

Corporation's Directors

Individuals elected by a corporation's shareholders to oversee the management and make major business decisions on behalf of the shareholders.

Stockholders

Individuals or entities that own one or more shares of stock in a corporation, thereby holding a portion of the company's ownership.

Paid-in Capital

The amount of money that shareholders have invested in a company through the purchase of stock, excluding the par value of the shares.