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Samantha Jones owns a chain of ice cream stores in New England. To draw attention to her stores, she adopted a very colorful and distinctive logo several years ago, which depicts a funny-looking cow churning ice cream. Recently, a dairy company asked Samantha if it could use a characterization of her funny-looking cow on a line of yogurt it is coming out with, and offered to pay Samantha's company 3 cents for every carton of yogurt it sells that has the cow's image on the carton. If Samantha accepts this proposal, she will need to enter into a(n) ________ agreement with the dairy.
Market Rate
The prevailing interest rate available in the marketplace for securities or loans, dictated by supply and demand forces.
Simple Interest
Interest earned or paid only on the original principal amount invested or loaned.
Prime Rate
The interest rate that commercial banks charge their most creditworthy customers, usually large corporations.
Repayment Schedule
A detailed plan of the amounts and timing of payments to be made on a loan.
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