Solve the Problem. -Find the Present Value of a Loan with an Annual

question 158

Multiple Choice

Solve the problem.
-Find the present value of a loan with an annual interest rate of 6.7% and periodic payments of $1266.21 for a term of 30 years, with payments made and interest charged 12 times per year.

• A) $392,454.12
• B) $156,981.65
• C) $353,208.71
• D) $196,227.06

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Definitions:

Partnership

A business arrangement recognized by law involving two or more partners who collectively oversee the business and divide its profits.

Cooperatives

Organizations owned and operated by a group of individuals for their mutual benefit, where profits and decision-making are shared among members.

Incorporated

A business that has been formed into a legal corporation, providing its owners with limited liability.

Limited Liability Company (LLC)

An unincorporated business that is taxed like a partnership, with the members paying personal income taxes, and has the limited liability of a corporation.