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Hometown Builders Is Borrowing $195,000 Today for Four Years

Question 94

Multiple Choice

Hometown Builders is borrowing $195,000 today for four years.The loan is an interest-only loan with an APR of 7.65 percent.Payments are to be made annually.What is the amount of the first annual payment?


A) $14,917.50
B) $20,610.90
C) $18,029.18
D) $58,416.55
E) $63,667.50

Correct Answer:

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