Suppose You Borrowed $12,000 at a Rate of 9% and Must

question 70

Multiple Choice

Suppose you borrowed $12,000 at a rate of 9% and must repay it in 4 equal installments at the end of each of the next 4 years.By how much would you reduce the amount you owe in the first year?

• A)$2,492.82
• B)$2,624.02
• C)$2,755.23
• D)$2,892.99

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Definitions:

Contract

A legally binding agreement between two or more parties that creates mutual obligations enforceable by law.

Implied Authority

The power of an agent to act on behalf of a principal, derived from the actions, words, or conduct of the principal rather than from an explicit written or spoken agreement.

Express Authority

Authority explicitly granted by a principal to an agent to perform specific acts or functions on the principal's behalf.

Apparent Authority

Apparent authority refers to a situation where a person appears to have the agent's authority to act on behalf of another (the principal) due to the principal's actions, leading third parties to believe in the existence of such authority.