Your company borrowed $20 million from a bank for two years at an interest rate of 5%, paid semi-annually. The loan amortizes according to the following schedule: 50% at the end of the first year. Your final payment will be:
a) $1 million in interest plus $20 million in principal
b) $1 million in interest plus $10 million in principal
c) $500,000 in interest plus $20 million in principal
d) $500,000 in interest plus $10 million in principal
e) $250,000 in interest plus $10 million in principal
Answer: e) $250,000 in interest plus $10 million in principal
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Which of the following statements regarding communications-style bias is most likely true?
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