You have borrowed a loan of $20,000 from a bank to buy a car from Chase at the interest rate of 7.5% each year. You have promised Chase to make annual mortgage style payments. If you want to borrow this loan for one year, what is the principal payment? a. $21,500.00 b. $20,000.00 c. $21,100.00 d. $17,690.25 e. None of the above

a. $21,500.00

Explanation:

Principal Payment is the amount which includes Interest Payment along with any additional amount paid with Interest Amount.

The simple way to calculate the Principal Payment is as follows;

Interest Payment = P x

where;

P = Loan Amount = $20,000

r = Interest Rate = 7.5% = 0.075

n = Number of periods = 1

So;

Interest Payment = $20,000 x

Interest Payment = $20,000 x 0.075

Interest Payment = $1,500

Since the loan was only for 1 year so the principal payment can be calculated as follows;

Principal Payment = Loan Amount + Interest Payment

Principal Payment = $20,000 + $1,500

Principal Payment = $21,500

Hence Option a. $21,500.00 is the correct answer.

c

explanation:

well obviously you must be dumb if you dont noe dat

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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