Shiva Transferred His Mortgage of $145 981 from CIBC to BMO

question 107

Multiple Choice

Shiva transferred his mortgage of $145 981 from CIBC to BMO for the remaining amortization period at 3.59% compounded semi-annually. He has agreed to pay rounded up payment of $2000 every month. How long will it take Shiva to pay-off his mortgage?

• A) 6 years 11 months
• B) 6 years 1 months
• C) 8 years
• D) 6 years 6 months
• E) 10 years

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Definitions:

Full Capacity

The highest amount of products or services a business can consistently generate during a specific timeframe under standard conditions.

Fixed Assets

Long-term tangible assets used in the operation of a business, not expected to be converted to cash within a year.

Sales Growth

The increase in sales over a specific period, reflecting a company's ability to grow revenue through marketing, expansion, and new product introductions.

Subcontract

An agreement where a primary contractor hires another party to perform part of the work that they have been contracted to complete.