Amertech Borrowed $32 000

question 40

Essay

Amertech borrowed $32 000.00 from Balzac Credit Union on May 17 at 12%. The interest rate was changed to 14.11% effective July 1 and to 13.27% effective October 1. The loan was repaid by payments of $17 000.000 on July 15 and the balance, including the accumulated interest, on November 20. How much did the loan cost?

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Definitions:

Conversion Effect

When minority influence brings about a sudden and dramatic internal and private change in the attitudes of a majority.

Moscovici

Refers to Serge Moscovici, a French social psychologist known for his work on social influence and the theory of social representations.

Private Change

Alterations in personal beliefs, attitudes, or behaviors that are influenced by internal factors or personal reflection, not necessarily observable by others.

Attitudes

Mental states or leanings toward objects, people, or events, reflecting evaluations or feelings.