Nico Makes Annual End-Of-Year Payments of $5,043

question 132

Multiple Choice

Nico makes annual end-of-year payments of $5,043.71 on a four-year loan with an interest rate of 13 percent. The original principal amount was ________.

• A) $24,450
• B) $15,000
• C) $3,100
• D) $20,175

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Definitions:

Defense of Fraud

In legal contexts, the defense of fraud involves arguments and evidence to challenge the validity of a contract or transaction based on claims of deceit or misrepresentation.

Oral Agreement

A contract or agreement made through spoken words rather than written documentation, which may still be legally binding.

Admits to the Contract

The act of acknowledging or affirming one's acceptance of the terms and conditions of a contract, making it legally binding.

UCC

stands for the Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.