The Final Payment of a Loan with Semi-Annual Payments Consists

question 70

Multiple Choice

The final payment of a loan with semi-annual payments consists of $5 in interest and $250 in repayment of principal.What is the nominal rate of interest compounded semi-annually,j₂ that is being charged on this loan?

• A)j₂ < 1.9%
• B)1.9% ≤ j₂ < 2.9%
• C)(C).2.9% ≤ j₂ < 3.9%
• D)j₂ ≥ 3.9%

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Definitions:

Popular Pressure

Influence exerted by public opinion on elected officials or decision-makers to take a specific action or adopt certain policies.

Single Election Year

A Single Election Year refers to any specific year in which elections are held, typically referring to the regularly scheduled federal, state, or local elections.

Separation of Powers

A principle of governance where the state's powers are divided among distinct branches to prevent any one group from gaining too much power.

Federalism

A system of government in which power is divided between a central (national) government and regional (state or provincial) governments.