The Market Value of a Loan Is

question 7

Multiple Choice

The Market Value of a loan is:

• A) The loan balance times one minus the market rate
• B) The loan balance times one minus the original rate
• C) The future value of the remaining payments
• D) The present value of the remaining payments

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Definitions:

Personal Property

Items of property that include movable assets as opposed to real property (land and buildings).

Gross Negligence

A legal concept signifying a severe degree of negligence demonstrating a reckless disregard for the safety or lives of others.

Punitive Damages

Monetary compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.

Compensate

To compensate means to provide something, typically money, in recognition of loss, suffering, or damage incurred; a form of recompense.