A Loan of $45,000 Calls for Equal Payments at the End

question 52

Multiple Choice

A loan of $45,000 calls for equal payments at the end of every three months for the next six years. What is the size of the payments if the interest rate is 14% compounded semi-annually?

• A) $3,924
• B) $2,802
• C) $3.817
• D) $2,785
• E) $3,395

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Definitions:

Insurance Company

A business entity that provides financial protection or reimbursement against losses to individuals or entities, in exchange for premium payments.

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification system used by mental health professionals to diagnose and categorize mental disorders.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.

Treatment Goals

Specific, measurable objectives set for a patient or client to achieve as a result of therapeutic intervention.