MrTramp Made a Mortgage 5 Years Ago for $85,000 at 8.25

question 12

Multiple Choice

Mr.Tramp made a mortgage 5 years ago for $85,000 at 8.25% interest and a 15 year term.Rates have now risen to 10% for an equivalent loan.Mr.Tramp's lender is willing to discount the loan by $2,000 if he will prepay the loan.What rate of return would Mr.Tramp receive by prepaying the loan?

• A)10.24%
• B)8.95%
• C)14.32%
• D)9.14%

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Definitions:

Beneficial Result

A positive, advantageous, or desirable outcome that arises from a particular action or set of circumstances.

Health Indicator

A measure or metric used to assess the health status, function, or overall condition of an individual, community, or population, often informing public health and policy decisions.

Sentinel Condition

A disease or event that indicates the presence of a hazardous condition or a high-risk situation warranting public health surveillance and potentially immediate intervention.

Rare Disease

A condition affecting a small percentage of the population, often complex and poorly understood, and sometimes lacking effective treatment.