Suppose You Take an FRM of $150,000 at 7

question 2

Multiple Choice

Suppose you take an FRM of $150,000 at 7.5% for 30 years.If you repay this mortgage at the end of year five,what is the outstanding balance?

• A) $52,342
• B) $87,071
• C) $141,574
• D) $141,926
• E) none of the above

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Definitions:

Implied Terms

Implied terms are provisions in a contract that are not explicitly stated but are understood to exist based on the nature of the agreement, legal requirements, or business practices.

Exemption Clause

A contract term that attempts to limit or exclude one party's liability for certain eventualities or damages.

Deliverable State

A condition referring to the readiness or suitability of a product or property to be handed over or delivered as per an agreement.

Standard-Sized Cupboards

Standard-sized cupboards refer to storage units with dimensions that adhere to commonly accepted measurements for such furniture, facilitating compatibility and uniformity in spaces.