What Is the Size of the Final Unequal Payment of a Loan

question 29

Multiple Choice

What is the size of the final unequal payment of a loan for $2723.44 if it has quarterly payments of $500? The interest rate is 8.4% compounded quarterly.

• A) $432.14
• B) $423.14
• C) $441.14
• D) $414.14
• E) $424.14

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Definitions:

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.

Rental Payment

The amount paid periodically by a tenant to a landlord in exchange for the use of property or land.

Primarily Rental Property

Real estate that is predominantly used for rental to others, rather than as the owner's primary residence.

Schedule E

A form used by the IRS for taxpayers to report income and losses from rental property, royalties, partnerships, S corporations, estates, and trusts.