How Much Interest Will There Be in the Second Payment

question 22

Multiple Choice

How much interest will there be in the second payment on a fully amortized loan of $240,000 at 8% interest payable $1,800 per month?

• A) $1,440.67
• B) $1,598.67
• C) $1,600
• D) $1,723.47

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Definitions:

General Utility

The overall satisfaction or happiness derived from consuming goods and services. This term is a restated definition for "Total Utility."

Consumer Surplus

The difference in the overall amount consumers are willing and able to allocate for a good or service against the actual amount paid.

English Economist

An English Economist refers to an economist from England who specializes in the study of economics, the social science concerned with the production, distribution, and consumption of goods and services.

Utility Theory

A theory in economics that assesses the usefulness or satisfaction a consumer gains from consuming goods and services.