What Amount Can You Borrow If You Make Seven Semiannual

question 64

Multiple Choice

What amount can you borrow if you make seven semiannual payments of $4,000 at an 8% annual rate of interest? (^{PV of $1}, ^{FV of $1}, ^{PVA of $1}, and ^{FVA of $1}) (Use appropriate factor(s) from the tables provided.)

• A) $25,760.00
• B) $28,000.00
• C) $35,691.20
• D) $31,049.00
• E) $24,008.40

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Definitions:

Valid and Enforceable

Pertaining to a contract or agreement that is legally binding and can be upheld in a court of law.

Statute of Frauds

A legal requirement that certain types of contracts be memorialized in a signed writing with sufficient content to evidence the contract.

Contract of Guarantee

A contract where a third party agrees to be responsible for the debt or obligations of a borrower in case the borrower fails to fulfill their contractual obligations.

Unsigned Note

A note or document that lacks the signature of the party or parties involved, potentially affecting its legal enforceability.