In Order to Borrow $100,000 for a 10% Loan on Discount

question 143

Multiple Choice

In order to borrow $100,000 for a 10% loan on discount basis, the firm will actually have to borrow:

• A) $110,000
• B) $111,111
• C) $100,000
• D) $90,000

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Definitions:

Postbox Rule

A legal doctrine stating that an offer is considered accepted once the acceptance is posted, not when the offeror receives it.

Communicate by Mail

The process of sending messages or information through postal services.

Specified Period

A set timeframe or duration that is explicitly stated or agreed upon.

Revoke Offer

The withdrawal of an offer by the offeror before it is accepted by the offeree, rendering the offer void.