Use the Real Estate Amortization Table to Find the Monthly

question 45

Multiple Choice

Use the real estate amortization table to find the monthly payment for the loan.
-What is the monthly payment on a 25-year loan of $93,700 if the annual interest rate is ?

• A)$765.53
• B)$575.32
• C)$644.66
• D)$548.15

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Definitions:

Projected Benefit Obligation

Projected Benefit Obligation (PBO) is a measure of the estimated total amount a pension plan needs to cover future pension benefits owed to employees, based on expected future salary increases.

Plan Assets

The resources that a pension plan has accumulated to cover future obligations to participants.

Amortization of Prior Service Costs

The process of gradually writing off the initial costs of services received or obligations incurred in the past, over the service periods of the involved employees.