Determine the Comparable Interest Rate (To Two Decimal Places) for a $50,000

question 32

Multiple Choice

Determine the comparable interest rate (to two decimal places) for a $50,000 loan with this quoted information. 7.85% + 2 pts + $400 origination fee

• A) \(8.20 \%\)
• B) \(7.85 \%\)
• C) \(9.85 \%\)
• D) \(8.00 \%\)
• E) \(16.05 \%\)

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Definitions:

State Inheritance Tax

A tax imposed by some states on individuals who inherit property or money from someone who has died.

Estate Administration

The process of managing and distributing a deceased person's assets according to their will or the laws of intestacy.

Totten Trust

is a type of revocable trust created by depositing funds into a bank account with a designated beneficiary upon the account holder's death.

Settlor

The person who creates a trust by transferring assets into the trust for the benefit of the trust's beneficiaries.