In a Settlement Procedure, Prepaid Interest Is Required for the Time

question 6

Multiple Choice

In a settlement procedure, prepaid interest is required for the time period from September 21 (date of closing) through September 30. What amount of prepaid interest is due for a loan of $200,000 at 5% interest? (Banker's year is 360 Days)

• A) $250.00
• B) $277.78
• C) $246.57
• D) 208.33

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Definitions:

mL

Milliliter, a unit of volume in the metric system equal to one thousandth of a liter.

Units

A standard quantity in terms of which other quantities may be expressed.

Used Needles

Needles that have been utilized for injection or aspiration and must be disposed of in specific containers to prevent injury and disease transmission.

Syringes

Medical devices used to inject or withdraw fluids, consisting of a needle and a body that holds the fluid.