A Survey of Banks Revealed the Following Distribution for the Interest

question 75

Multiple Choice

A survey of banks revealed the following distribution for the interest rate being charged on a
Home loan (based on a 30-year mortgage with a 10% down payment) on a certain date in the past.
If a bank is selected at random from this distribution, what is the chance that the interest rate charged
On a home loan will exceed 3.49%?

• A) 0.06
• B) 0.41
• C) 0.59
• D) 1.00

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Definitions:

Express Terms

Specific conditions and obligations explicitly stated and agreed upon by the parties in a contract.

Non Est Factum

A defense in contract law that the person signing the document did not understand its nature due to a significant mistake.

Duress

A situation where a person is forced into an action or decision under threat of harm or coercion.

Obligation

A duty or commitment imposed by law, contract, or moral duty.