An Assignable Loan Contract Executed 3 Months Ago Requires Two

question 27

Short Answer

An assignable loan contract executed 3 months ago requires two payments of $3,200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is offering to sell the contract to a finance company in order to raise urgently needed cash. If the finance company requires a 16% simple interest rate of return, what price will it be prepared to pay today for the contract?

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Definitions:

Transmission

The act of passing something from one place, person, or thing to another, often referring to diseases, information, or mechanical power.

Integration Of Information

The process of combining data from different sources to generate a comprehensive understanding or to make decisions.

Pituitary Gland

A small endocrine gland in the brain that produces key hormones which regulate growth, metabolism, and reproduction.

External Sexual Organs

Refers to the sex organs outside the body that are involved in sexual reproduction and sexual pleasure.