If John Makes Annual Year-End Payments of $8337

question 40

Multiple Choice

If John makes annual year-end payments of $8337.83 on a 20-year loan with an annual interest rate of 7.5 percent,what is the original principal amount for John's loan?

• A)$82 000
• B)$83 325
• C)$85 700
• D)$85 000

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Definitions:

Termination

The act of ending or concluding something, such as a contract, employment, or agreement.

Misrepresentation

Deliberately providing false information to another party, leading them to make decisions they otherwise wouldn't have.

Reliance

In legal terms, it refers to the act of trusting or acting based on the promises or statements of another party, often relevant in contract law.

Marshaling of Assets

A legal principle requiring the fair and orderly distribution of a debtor's assets among creditors, especially when the debtor has multiple debts secured by the same assets.