In Order to Help Finance the Purchase of a New

question 120

Multiple Choice

In order to help finance the purchase of a new house, the Abdullahs have decided to apply for a short-term loan (a bridge loan) in the amount of $120,000 for a term of 2 mo. If the bank charges simple interest at the rate of 14%/year, how much will the Abdullahs owe the bank at the end of the term? ​

• A) $122,800
• B) $240,000
• C) $117,400
• D) $126,300

---

Definitions:

Proposition

A statement in logic that expresses a judgment or opinion and can be either true or false.

Disjunctive Proposition

A statement formed by combining two or more propositions with the word "or," indicating that at least one of the propositions is true.

Hypothetical Proposition

A statement that suggests a possible situation or condition for further reasoning or speculation.

Standard Form

Refers to a conventional, widely accepted way of presenting or structuring a document, statement, or mathematical equation.