The lender in using a deed of trust (trust deed) to secure a loan. The lender is referred to as the:
A. Mortgagor.
B. Mortgagee.
C. Trustor
D. Beneficiary.
Answer: D. Beneficiary.
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Which of the following statements regarding traditional IRAs is NOT correct?
A) Peter inherits $15,000 in traditional IRA benefits from his father who recently died. Peter can set up a tax-favored rollover traditional IRA with the money. B) Bradley has $36,000 of pretax dollars and earnings in a traditional IRA when he decides to retire, and he elects to withdraw $8,000 per year. During his first year of retirement, $8,000 will be included in his taxable income. C) Walter is 60 and is not disabled. If he takes a distribution from his traditional IRA, it is subject to tax as ordinary income, but with no penalty for early withdrawal. D) June has accumulated $30,000 of pretax dollars and earnings in her traditional IR At age 55, she withdraws $2,500 to take a vacation. She will have to include the $2,500 in her taxable income for the year and pay a $250 penalty.
Use Scenario 2.4 to solve this problem. What does the company save each month by selecting this low-cost option (for monthly requirements of 3,000 units)?
A) $1,000 B) $3,000 C) $6,000 D) Can't be determined with information given.