A $60,000 Loan at 12% Compounded Semi-Annually Is to Be

question 90

Multiple Choice

A $60,000 loan at 12% compounded semi-annually is to be repaid by monthly payments of $1,000.
-How much will the principal be reduced by payments 13 to 24 inclusive?

• A) $5,978.87
• B) $6,021.13
• C) $11,147.84
• D) $6,101.66
• E) $5,898.34

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Definitions:

Shortage/Surplus

Conditions where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus) in a market.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a specific price level.

Quantity Supplied

The volume of a good or service available for sale from suppliers at a certain cost.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service, intended to protect consumers from prices that are deemed too high.