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(TCO 3) If you borrow $50,000 today at 10% interes...




(TCO 3) If you borrow $50,000 today at 10% interest for eight years. How much of your second payment will be applied to interest? (Points : 3) $5,000 $4,562 $4,809 can not be determined with the information given (TCO 3) Match the following terms with the examples as appropriate: (Points : 4) Answer Potential Matches: : Pure discount loan 1 : You obtained a business loan for four months. The loan will allow you to paid $300 in interest for three months and a final payment of interest and principal at the end of the four month. : Amortized Loan 2 : You obtained a mortgage to buy a home. You will pay $800 per month to cover both interest and principal. : Interest-only Loan 3 : a way used by the US government to borrow money on short-term basis. : Treasury Bill 4 : You borrow $1,000 from your best friend. In return, you will give him back $1150 in 3 months. (TCO 3) You are interested in saving to buy a new machine that costs $3,700. You can deposit $1,941 in your bank today. If your bank pays 5% annual interest on its accounts, how long will it take you to save for the new machine? (Points : 4) about 13 years about 4.5 years about 2 years Can not be determined


Paper#7226 | Written in 18-Jul-2015

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