You Have Been Promised a Payment of $30,000 in the Future.In

question 126

Multiple Choice

You have been promised a payment of $30,000 in the future.In which case is the present value of this payment highest?

• A) You receive the payment 3 years from now and the interest rate is 8 percent.
• B) You receive the payment 3 years from now and the interest rate is 6 percent.
• C) You receive the payment 2 years from now and the interest rate is 8 percent.
• D) You receive the payment 2 years from now and the interest rate is 6 percent.

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Definitions:

Unregistered Mortgage

A mortgage that has not been formally recorded with the relevant legal or government authorities, potentially affecting its enforceability.

Default

The failure to fulfill a legal obligation, such as not making a payment on a loan.

Equity of Redemption

The right of a borrower to reclaim property put up as collateral after clearing their debt, especially in relation to mortgage agreements.

Mortgageable Estate

A property or estate which can be used as security for a mortgage loan.