​Fact Pattern 13-1

question 19

Multiple Choice

​Fact Pattern 13-1
Lewis,an employee of Silos,Inc.,makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids.Consequently,Silos's bid is significantly low.
-Refer to Fact Pattern 13-1.Any contract with AgriCo-op that includes the mistake may be rescinded

• A)if AgriCo-op knew or should have known of the mistake.
• B)if Lewis's supervisor did not know of the mistake.
• C)if Silos knew or should have known of the mistake.
• D)under no circumstances.

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Definitions:

Monthly Payment

The amount of money that needs to be paid each month, often used in the context of loans or leases.

Principal Portion

The part of a loan payment that reduces the outstanding balance owed on the loan.

Compounded Monthly

Interest calculation method where interest is added to the principal on a monthly basis.

Amortization Schedule

A detailed table of periodic loan payments, breaking down the amounts going towards principal and interest over the life of the loan.