You Want to Borrow $47,170 from Your Local Bank to Buy

question 100

Multiple Choice

You want to borrow $47,170 from your local bank to buy a new sailboat.You can afford to make monthly payments of $1,160,but no more.Assume monthly compounding.What is the highest rate you can afford on a 48-month APR loan?

• A)8.38 percent
• B)8.67 percent
• C)8.82 percent
• D)9.01 percent
• E)9.18 percent

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Definitions:

Property Insurance

Property insurance provides coverage against risks to property, such as damage or theft, offering financial reimbursement to the owner or renter.

Real Insurance Company

A licensed entity that provides insurance products and services to individuals and businesses.

Disability Insurance

A type of insurance that provides financial support to individuals who are unable to work due to a disability.

Monthly Wages

The total amount of money earned by an employee within a month, often a fixed salary but can also include bonuses or commissions.