What Is the Payment Size of a Loan That Has

question 26

Multiple Choice

What is the payment size of a loan that has semi-annual payments and an interest rate of 5.52% compounded monthly? The loan principal is $1641.12 and the loan is for 48 months.

• A) $321.74
• B) $231.74
• C) $123.74
• D) $274.31
• E) $221.31

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Definitions:

Divorce

The legal dissolution of a marriage by a court or other competent body.

Sever

To cut off or divide, often used in legal contexts to discuss separating parts of contracts or severing ties between entities.

Estate in Land

Refers to the degree, quantity, nature, and extent of interest a person has in real property.

Fee Simple

The most complete form of ownership of real estate, giving the holder full possession and control over the property.