Solve the Problem. -Find the Periodic Payment of a Loan with Present Value

question 277

Multiple Choice

Solve the problem.
-Find the periodic payment of a loan with present value $20,000 and an annual interest rate 6.3% for a term of 3 years, with payments made and interest charged 12 times per year.

• A) $1222.32
• B) $1100.09
• C) $488.93
• D) $611.16

Identify the conditions under which a check is considered stale and the impact of presentation timing.

Discuss the factors affecting the negotiability and enforcement of written promises and assignments.

Understand the difference between a cashier's check and a certified check.

Understand the reasons why a bank might refuse to certify a check.

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Definitions:

Annuity Payment

This refers to the regular disbursement from an annuity investment, typically made on a monthly, quarterly, or yearly basis.

Amortized Loan

A loan with scheduled periodic payments that include both interest and principal repayment, ultimately paying off the loan by its maturity date.

Monthly Payment

This refers to the fixed amount of money paid by a borrower to a lender at regular monthly intervals, typically used in the context of loans or mortgages.

EAR

Effective Annual Rate, a comprehensive calculation of interest on a loan or investment, considering the effect of compounding.