Suppose You Borrowed $50,000 at a Rate of 8

question 39

Multiple Choice

Suppose you borrowed $50,000 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) $31,171.28
• B) $41,146.10
• C) $40,730.48
• D) $41,561.71
• E) $45,302.27

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Definitions:

Barrier

A barrier is an obstacle that prevents movement, access, or progress towards a goal or between entities.

Loss Aversion

Loss aversion refers to people's tendency to prefer avoiding losses rather than acquiring equivalent gains: it is better to not lose $5 than to find $5.

Negative Impact

Adverse effects or damages caused by an action or event.

Positive Impact

The beneficial effects or outcomes resulting from an action, policy, or behavior.