An Assignable Loan Contract Executed 3 Months Ago Requires Two

question 160

Short Answer

An assignable loan contract executed 3 months ago requires two payments of $3,200 plus interest at 9% from the date of the contract, to be paid 4 and 8 months after the contract date. The payee is offering to sell the contract to a finance company in order to raise urgently needed cash. If the finance company requires a 16% rate of return, what price will it be prepared to pay today for the contract?

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Definitions:

Strong Close

A powerful and effective conclusion of a communication or presentation that leaves a lasting impression.

Slides

Individual pages or screens in an electronic presentation, each typically focusing on a single topic or point.

Quality

The degree to which something meets certain standards or fulfills requirements, often related to excellence or superiority.

Absorb Information

To absorb information means to take in and understand data and concepts, often leading to the retention and application of new knowledge.