Suppose You Borrowed $30,000 at a Rate of 8

question 154

Multiple Choice

Suppose you borrowed $30,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years.How much would you still owe at the end of the first year,after you have made the first payment?

• A) $19,118.33
• B) $22,112.76
• C) $22,343.11
• D) $23,034.13
• E) $20,961.06

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Definitions:

Price

The amount of money required to purchase a good or service, set by the interplay of supply and demand forces in the market.

Total Cost

The full expense incurred in the production or acquisition of goods or services, including both fixed and variable costs.

Marginal Cost

The supplementary charge triggered by the manufacture of one extra unit of a product or service.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it represents the variable cost per unit of output.