Excel Electronics Is Eastern Alberta Accepted a 6-Month Promissory Note

question 75

Multiple Choice

Excel Electronics is Eastern Alberta accepted a 6-month promissory note from a customer for the $3950 balance owed on the purchase of a refrigerator. The note was dated November 8, 2015 and charged interest at 6.99%. The store's proprietor sold the promissory note 38 days later to Standard Union finance company at a price that would yield Standard Union 19% rate of return on its purchase price. What price did Standard Union pay to the proprietor of Excel Electronics?

• A) $4089.94
• B) $4087.67
• C) $3797.12
• D) $3799.22

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Definitions:

Commercial Finance Companies

Financial institutions that offer loans to businesses, particularly for equipment or inventory financing.

Leasing Companies

Firms that lease vehicles, equipment, or facilities to businesses or individuals, usually for a fixed period at a specified rate.

Business Credibility

The perception of a business as trustworthy and reliable, often built over time through consistent delivery of quality products or services.

Lending Decision

The process by which a lender evaluates the risk and potential of a loan application before granting funds to the borrower.