Liam Had an Extension Built onto His Home

question 73

Multiple Choice

Liam had an extension built onto his home. He financed it for 48 months with a loan at 5.00% APR. His monthly payments were $770. How much was the loan amount for this extension?

• A) $33,436
• B) $40,123
• C) $46,810
• D) $53,497

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Definitions:

Covenant

A legal agreement or contract specifying certain conditions or actions that must be met or complied with.

Prospectus

A regulatory filing that describes all the details of a debt or equity security to potential buyers.

Maturity Value

The total amount that will be paid to an investor at the date of maturity of a financial instrument, including principal and any accrued interest.