A Conditional Sale Contract Requires Two Payments 3 and 6

question 98

Short Answer

A conditional sale contract requires two payments 3 and 6 months after the date of the contract. Each payment consists of $1,900 principal plus simple interest at 10.5% on $1,900 from the date of the contract. One month into the contract, what price would a finance company pay for the contract if it requires an 16% rate of return on its purchases?

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Definitions:

Geriatric Division

A dedicated branch of a healthcare institution or service focused on the medical care and treatment of elderly patients.

Pharmaceutical Company

An enterprise that develops, produces, and markets drugs or pharmaceuticals for use as medications.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment, often involving clear and reasoned thinking.

Competitive Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.