A Borrower Has Secured a 30 Year,$150,000 Loan at 7

question 10

Multiple Choice

A borrower has secured a 30 year,$150,000 loan at 7% with monthly payments.Fifteen years later,an investor wants to purchase the loan from the lender.If market interest rates are 5%,what would the investor be willing to pay for the loan?

• A)$75,000
• B)$111,028
• C)$118,478
• D)$168,646

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Definitions:

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information regarding the location of parts of the body as well as interpreting visual information and processing language and mathematics.

Occipital Lobe

The region of the brain located at the back, primarily responsible for visual processing.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a crucial role in sound perception.

Nociceptors

Sensory receptors that detect signals from damaged tissue and can induce the perception of pain.