You Plan to Borrow $75,000 at a 7% Annual Interest

question 44

Multiple Choice

You plan to borrow $75,000 at a 7% annual interest rate.The terms require you to amortize the loan with 10 equal end-of-year payments.How much interest would you be paying in Year 2?

• A)$4,395.19
• B)$4,626.52
• C)$4,870.02
• D)$5,113.52

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Definitions:

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Soda Pop

A sweetened, carbonated beverage, often flavored and containing caffeine, colours, and preservatives.

Mixture

A combination of two or more substances that are not chemically bonded and can be separated by physical means.

States of Matter

The distinct forms that different phases of matter take on, including traditionally solid, liquid, and gas, as well as plasma and Bose-Einstein condensates under specific conditions.