How Much Would One Pay in Points on a $145,000

question 14

Multiple Choice

How much would one pay in points on a $145,000 loan if 2 points were charged?

• A)$2,842
• B)$2,000
• C)$2,900
• D)$2,320

Understand the significance of the Five Forces Model in determining market structure.

Interpret the role of concentration ratios in evaluating industry market structure.

Comprehend the market dynamics and outcome under a colluding oligopoly.

Evaluate the impact of government intervention on collusion and price fixing.

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Definitions:

Canada Revenue Agency

The federal agency responsible for administering tax laws and various social and economic benefit and incentive programs delivered through the tax system for the Government of Canada.

Simple Interest

A method of calculating interest where the charge is based on the original principal amount and does not compound.

Principal Amount

The original sum of money lent in a loan or invested, excluding any interest or profits.

Accrued Interest

Interest on a loan or bond that has accumulated but not yet been paid.