Semi-Annual Payments of $5,000 Are to Be Made on a $70,000

question 78

Multiple Choice

Semi-annual payments of $5,000 are to be made on a $70,000 loan at 14% compounded semi-annually. A smaller, final payment will be made at the end of the amortization period. What will be the size of the final payment?

• A) $2,977
• B) $4,125
• C) $3,130
• D) $4,990
• E) $3,855

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Definitions:

Delegate Duties

The act of assigning specific responsibilities or tasks from one person to another, often within an organizational hierarchy.

Student Government

An elected body within a school or university that represents student interests, organizes events, and potentially influences school policies and administrative decisions.

State University

A public university that is primarily funded by a state government.

Vesting

The process by which an individual acquires the right to a certain benefit or asset, often used in relation to pension plans and stock options.