Finance
An Iowa farm buyer obtains seller financing at 5% interest on a $400,000 balance. What is the annual interest for the first year?
A$18,000
B$20,000✓ Correct
C$22,000
D$24,000
Explanation
Annual interest = $400,000 × 5% = $20,000. To solve this, multiply the relevant values: $400,000 at 5%..
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