An $80,000 Loan Is Amortized by Monthly Payments Over 25

question 18

Multiple Choice

An $80,000 loan is amortized by monthly payments over 25 years. The interest rate charged is 10% compounded semi-annually.
-A $3100 item is paid for by end-of-month payments of $350. The interest rate charged is 15% compounded monthly. What is the size of the final payment?

• A) $158.46
• B) $236.88
• C) $154.52
• D) $113.12
• E) $193.54

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Definitions:

Integrity

The quality of being honest and having strong moral principles; moral uprightness.

Erikson's concept

Relates to Erik Erikson's theory of psychosocial development, which outlines eight stages of human development, each characterized by a specific conflict and its resolution.

Final stage of life

Refers to the last phase in the life cycle of an individual, often characterized by decline in physical and cognitive functions, leading up to death.

Palliative care

Medical care aimed at relieving the symptoms, pain, and stress of serious illness, rather than curing the disease.