An Assignable Loan Contract Executed Three Months Ago Requires Two

question 164

Short Answer

An assignable loan contract executed three months ago requires two payments to be paid five and ten months after the contract date. Each payment consists of a principal portion of $1,800 plus interest at 5% on $1,800 from the date of the contract. The payee is offering to sell the contract to a finance company in order to raise cash. If the finance company requires a return of 10%, what price will it be prepared to pay today for the contract?

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Definitions:

Ethical Regulation

Standards and guidelines established to govern the professional conduct and integrity of individuals in a certain profession, often applied to legal and medical fields.

ABA

Stands for the American Bar Association, a professional organization for lawyers and law students in the United States.

Disciplinary Sanction

Punishments or measures imposed by a professional organization or regulatory authority to correct misconduct or enforce standards.

Disbarment

A severe disciplinary sanction in which an attorney's license to practice law in the state is revoked because of unethical or illegal conduct.