To Finance Their New Home, the Tiballis Have Agreed to an $80,000

question 6

Multiple Choice

To finance their new home, the Tiballis have agreed to an $80,000 mortgage loan at 8.75% APR. What will their monthly payments be if the loan has a term of 20 years?

• A) \(\$ 8608.14\)
• B) \(\$ 7000.00\)
• C) \(\$ 706.97\)
• D) \(\$ 362.50\)
• E) \(\$ 4313.29\)

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Definitions:

Liquidated

The process of converting assets into cash or using them to pay off liabilities in the event of a business closure, bankruptcy, or when assets are no longer needed.

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.

Controlled Company

A company in which a majority of its stock is owned or its operations are controlled by another entity.