On January 1, Pablo Borrows $5,000 with a Fixed Interest

question 54

Multiple Choice

On January 1, Pablo borrows $5,000 with a fixed interest rate on the loan of 10% and a loan term of 2 years. He will be making monthly payments of $230.72. How much of Pablo's second loan payment would be interest charged?

• A) $41.67.
• B) $40.09.
• C) $38.50.
• D) $36.90.

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Appellate Court

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Probate Court

A specialized court that deals with matters concerning the estate of deceased persons, including the distribution of assets and adjudication of wills.

Bankruptcy Court

A specialized federal court that deals with cases involving bankruptcy filings and related legal issues.

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