A Customer Wants to Borrower $25,000 for One Year from TRC

question 24

Multiple Choice

A customer wants to borrower $25,000 for one year from TRC State Bank.The bank offers a discount loan with an interest rate of 15 percent.How much of the loan will be available to the customer?

• A)$25,000
• B)$28,750
• C)$22,500
• D)$21,250
• E)None of the options is correct

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Definitions:

Usury

The practice of charging more than the amount of interest allowed by law.

Nondisclosure Agreement

A legal contract between two or more parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes but wish to restrict access to or by third parties.

Disaffirm

The legal act of denying, rejecting, or invalidating a contract or agreement.