How much money could be borrowed at 7% compounded semi-annually if the borrower can make monthly payments of $875 for 25 years?
A) $124,926
B) $69,770
C) $24,999
D) $116,782
E) $123,801

Name: How much money could be borrowed at 7% compounded semi-annually if the borrower can make monthly payments of $875 for 25 years? A) $124,926 B) $69,770 C) $24,999 D) $116,782 E) $123,801
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Question

Quizplus · Accepted Answer

The correct answer is A because the present value of the monthly payments is $124,926.

How Much Money Could Be Borrowed at 7% Compounded Semi-Annually