You Are Considering a Home Loan with Monthly Payments Calculated

question 95

Multiple Choice

You are considering a home loan with monthly payments calculated at a rate of 0.4167% per month.What is the quoted rate of interest on the loan?

• A)4.5%
• B)4.75%
• C)5%
• D)6%

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Definitions:

Letter-of-credit Rights

Rights to payment under a letter of credit, which is a document from a bank guaranteeing that a seller will receive payment if certain conditions are met.

Economic Benefit

An economic benefit is a gain or advantage, usually measured in terms of money or value, received as a result of an action or transaction.

Statute of Frauds

A legal doctrine that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Surety

A party that takes responsibility for another's performance of an undertaking, such as fulfilling the terms of a contract.