Suppose that you want to purchase some land to build a homestead in the future. You can afford payments of $5,000 each year and want to pay the loan back over the next 20 years

Assuming no down payment is required, how much can you borrow if the bank will charge you an annual interest rate of 12%?
A) $100,985.45
B) $48,231.47
C) $37,347.22
D) $160,262.21


Answer: C

Business

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