Use the Following Information to Answer the Question(s)below

question 64

Multiple Choice

Use the following information to answer the question(s) below.
Dagny Taggart has just purchased a home and taken out a $400,000 mortgage.The mortgage has a 30-year term with monthly payments and has an APR of 5.4%.
-The total amount of principal that Dagny will pay during the first month of her mortgage is closest to:

• A)$246.
• B)$446.
• C)$1800.
• D)$2245.

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Definitions:

Efficient Level

The point at which an entity is operating at maximum productivity with the least waste of resources.

Producing Firm's Spillovers

External effects that a company's actions have on other parties or the economy without financial compensation.

Full Costs

The total costs associated with the production of goods or services, including both fixed and variable costs.

External Costs

Costs incurred by third parties who are not directly involved in a transaction or economic activity, such as environmental pollution affecting the community.