Which of the Following Must Be Known to Compute the Interest

question 69

Multiple Choice

Which of the following must be known to compute the interest rate paid from financing an asset purchase with an annuity?

• A)Fair value of the asset purchased,number and dollar amount of the annuity payments.
• B)Present value of the annuity,dollar amount and timing of the annuity payments.
• C)Fair value of the asset and timing of the annuity payments.
• D)Number of annuity payments and future value of the annuity.

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Definitions:

Bitumen

A black, sticky substance obtained from crude oil used in road surfacing and roofing.

High-sulphur

Refers to fuels or substances that contain a high percentage of sulfur, contributing to pollution when burned.

Bitumen

A black, sticky substance, also known as asphalt, used for road construction and roofing due to its waterproof properties.

Liquid Natural Gas

A form of natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.