Debra Owns a Farm

question 66

Multiple Choice

Debra owns a farm. She has the right to own and possess the farm until her death. She is not allowed to waste the property, and she cannot use the property in such a way as to destroy its value to future holders. Which of the following interests in real property does Debra have?

• A) fee simple absolute
• B) conditional estate
• C) life estate
• D) future interest

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Definitions:

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Deposit

A sum of money placed into a bank account or given as initial payment or security for the purchase of an item.

Compounded Daily

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a daily basis.

Interest

The cost of borrowing money or the return on investment for lending money, determined as a percentage of the principal amount.