Question

Consider the following loan. Complete parts (a)-(c) below.

Answer 1

Answer:

• The amount borrowed is $84,000
• the annual interest rate is 6%
• the number of payments per year is 12
• the loan term is 21 years
• the payment amount is $587

Step-by-step explanation:

This is a reading comprehension test. All of the answers are given in the 3rd sentence of the problem statement.

(You are expected to draw on your calendar knowledge to answer the question of the number of monthly payments in a year.)