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Sollozo Just Made a Single Payment to Repay a Loan

question 104

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Sollozo just made a single payment to repay a loan he had with the Corleone Finance Company. He paid a total of $86,500 which included interest of $56,500 at 48% compounded monthly. How long ago was the money borrowed?


Definitions:

Automatic Stay

A provision in bankruptcy law that temporarily stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

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Obligation

A legal or moral duty to perform or refrain from performing a certain action.

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A legal process initiated by creditors seeking to have a debtor declared bankrupt by a court to enforce the liquidation or reorganization of the debtor's assets.

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