Generally, death or insanity of either party will and immediately terminate the agency relationship. if performance becomes , the agency relationship will terminate. a significant change in may trigger termination of the agency if the agent can infer that the principal will not want the relationship to continue. bankruptcy of the most likely will terminate the agency, but bankruptcy of the may or may not terminate the agency. finally, if the nationality of the two parties is different and those nations are , the relationship is terminated because there is no way to legally enforce the rights of either party.

fill in the blanks with words that would best complete the passage.
reasonably
circumstances
principal
impossible
in negotiations
at war
price
absolutely
probably
inconvenient
automatically
agent

Suppose that jim plans to borrow money for an education at texas a& m university. jim will need to borrow $25,000 at the end of each year for the next five years (total=$125,000). jim wishes his parents could pay for his education but they can’t. at least, he qualifies for government loans with a reduced interest rate while he is in school. he has a special arrangement with aggiebank to lend him the money at a subsidized rate of 1% over five years without having to make a payment until the end of the fifth year. however, at the end of the fifth year, jim agrees to pay off the loan by borrowing from longhorn bank. longhorn bank will lend him the money he needs at an annual interest rate of 6%. jim agrees to pay back the longhorn bank with 20 annual payments and the payments will be uniform (equal annual payments including principal and interest). (i) calculate how much money jim has to borrow at the end of 5 years to pay off the loan with aggiebank. a. $121,336 b. $127,525 c. $125,000 d. $102,020 e. none of the above