Solve the Problem

question 224

Multiple Choice

Solve the problem. If necessary, use the table of monthly payments below. Round your answer to the nearest cent.
Monthly Payments to Repay Principal and Interest on a $1000 Mortgage
-Find the monthly payment needed to amortize principal and interest for the following fixed-rate mortgage.
Mortgage amount: $77,000
Term of mortgage: 15 years
Interest rate: 11.5%

• A)$875.18
• B)$899.51
• C)$821.15
• D)$924.13

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Definitions:

Illegal And Unenforceable

Describes contracts that cannot be legally upheld or enforced due to the inclusion of illegal acts or elements.

Usury

The lending of money at an exorbitant or unlawful rate of interest.

Adhesion Contract

A contract created by a party to an agreement that is presented to the other party on a take-it-or-leave-it basis. Such contracts are legal but are sometimes rescinded on the grounds of unconscionability and the absence of one party’s free will to enter a contract.

Habitual Drunkards

A legal term historically used to describe individuals who regularly engage in excessive drinking of alcohol, often considered in legal contexts regarding their competency or rights.