John Was Indebted to Stan on a Loan for $1,000

question 100

True/False

John was indebted to Stan on a loan for $1,000.Stan assigned John's promise to pay to Bob.
-Josephine is the executor of her father's will.She does not want to liquidate any part of his stock portfolio at this time to pay off a large debt he owed Tom,because the market is very low right now and she would likely get a better price later in the year.Her verbal promise to Tom that she will repay him herself is unenforceable.

---

Definitions:

Guaranteed Investment Certificate

A secure investment that guarantees to return the principal amount along with a fixed rate of interest at the end of the investment term.

Interest

The cost of borrowing money, calculated as a percentage of the total amount borrowed.

Compounded Annually

Refers to the process of earning interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.

Maturity Value

The amount of money that an investment will grow to at the end of its investment period.