Solved

A Small Business Repairs Its Store

Question 23

Multiple Choice

A small business repairs its store. The builders charge them $130,000 which will be paid back in monthly installments over three years at 6.80% APR. The builders will reduce this rate to 6.30% APR if they pay $2600 up front. By approximately how much will this reduce the monthly loan repayments?


A) $109
B) $218
C) $164
D) $55

Correct Answer:

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