You Take Out a Loan of $10,000 Today at Simple

question 62

Multiple Choice

You take out a loan of $10,000 today at simple interest at r = 15%.You make the following payments: $100 in two months,$8000 in four months and the balance in 6 months.What is the final balance according to the Declining Balance Method?

• A)$2445.00
• B)$2460.00
• C)$2463.84
• D)$2562.50

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Definitions:

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Insurable Interest

A stake in the value of an entity or event for which an insurance policy is purchased to mitigate the risk of loss.

Risk of Loss

Refers to the legal responsibility for the damage, destruction, or loss of property, determining which party bears the risk.

Unconscionable

A term used to describe actions or terms in a contract that are so unfair or oppressive to one party that they are considered shocking to the moral conscience.