A Bank Offers a Home Buyer a 20-Year Loan at 8

question 19

Multiple Choice

A bank offers a home buyer a 20-year loan at 8% per year. If the home buyer borrows $130,000 from the bank, how much must be repaid every year?

• A) $15,888.95
• B) $18,537.11
• C) $21,185.26
• D) $13,240.79

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Inventory Loans

are secured short-term loans or lines of credit given against the inventory of a business, used to purchase additional inventory or manage cash flow.

Advantages

Advantages are beneficial aspects or competitive edges that a business or entity has over others in its field or market.

Disadvantages

The unfavorable conditions or attributes that lead to a decrease in effectiveness, efficiency, or benefit.