A $60,000 Loan at 12% Compounded Semi-Annually Is to Be

question 58

Multiple Choice

A $60,000 loan at 12% compounded semi-annually is to be repaid by monthly payments of $1,000.
-The vendor of a property agrees to take back a $60,000 mortgage at a rate of 8% compounded semi-annually with monthly payments of $500 for a three-year term. Calculate the market value of the mortgage if financial institutions are charging 10% compounded semi-annually on three-year-term mortgages.

• A) $41,557.55
• B) $57,098.85
• C) $60,000.00
• D) $53,936.60
• E) $59,111.11

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Definitions:

Various Abilities

A term referring to the diverse range of skills or competences that different individuals possess.

Sensory Systems

The parts of the body involved in receiving and processing sensory information from the environment, including sight, hearing, taste, touch, and smell.

Hearing

The sensory process by which sound waves are converted into electrical signals and interpreted by the brain, allowing the perception of sound.

Vision

The faculty or state of being able to see; also, a concept or plan regarding the future.