Joe borrowed 10,000 at 10 per year and promised to pay it back in equal annual installments at
the end of each of the next 5 years. Joe's payment will be 2,100 (10,000/5 ) + (10,000 10).
Indicate whether the statement is true or false
Question 2
The purpose of the appraisal clause in the Homeowners 3 policy is to
A) determine the appropriate amount of homeowners insurance to purchase.
B) set a value on the home for estate purposes if the homeowner dies.
C) settle valuation disputes between the insurer and insured after a loss has occurred.
D) determine a mortgage lender's insurable interest after a loss has occurred.
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