The Term Usually Used to Describe the Situation Where a Lessee

question 147

Multiple Choice

The term usually used to describe the situation where a lessee has an option to purchase the leased property at a price that is sufficiently lower than its fair market value so that the exercise of the option appears reasonably assured is:

• A)bargain renewal option.
• B)assured purchase option.
• C)bargain purchase option.
• D)bargain buy-out option.

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Definitions:

Revolving Line of Credit

A credit facility extended by a financial institution to a customer that allows the customer to borrow up to a certain limit, pay down the balance, and then borrow again.

Simple Interest

Interest calculation method that involves multiplying the principal amount by the interest rate and the term of the loan or investment, without compounding.

Annual Rate

The interest rate for a loan or investment over a one-year period, often used to compare the yield of financial products.

Student Loans

Loans taken by students to cover higher education expenses, expected to be repaid with interest.