If You Borrow $50,000 at an Annual Interest Rate of 12

question 100

Multiple Choice

If you borrow $50,000 at an annual interest rate of 12% for six years,what is the annual payment (prior to maturity) on an interest-only type of loan?

• A)$0.00
• B)$6,000.00
• C)$8,333.33
• D)$12,161.29

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Definitions:

Revenue

The income that an organization receives from its normal business activities, usually from the sale of goods and services.

Insurance

A contractual arrangement providing financial protection against losses or damages from specific risks, in exchange for premium payments.

Tolerance for Risk

is the degree to which an individual, investor, or organization is willing to endure uncertainty and potential losses in pursuit of potential gains.

Total Payments

The sum amount of money transferred from one party to another, often referring to the complete payables in transactions, loans, or settlements.