If the Discount Method Is Used to Calculate a Finance

question 33

Multiple Choice

If the discount method is used to calculate a finance charge of $250.60 on a $2,400 loan,the amount to be ____________. ​

• A)repaid is $2,400
• B)disbursed to the borrower is $2,400
• C)repaid is $2,650.60
• D)disbursed to the borrower is $2,650.60

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Definitions:

Control

The power to influence or direct people's behavior or the course of events, especially in the context of corporate governance or management.

Special Purpose Entities

Legal entities created by a parent company to isolate financial risk and conduct specific activities while protecting the parent company financially.

Primary Beneficiary

The main individual or entity designated to receive the benefits or payouts from an insurance policy, trust, or other financial instrument.

Consolidated

Referring to the financial statements that combine the financial information of a parent company with its subsidiaries to present as a single entity.