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Lisa [10]
3 years ago
12

Cindy is taking out a loan today. The cash amount that she will receive today is equal to the present value of the lump sum paym

ent that she will be required to pay two years from today. Which type of loan is this? 1) Prindpal-only 2) Amortized 3) Interest-only 4) Compound 5) Pure discount
Business
2 answers:
Alexxandr [17]3 years ago
6 0

Answer:

Option E, PURE DISCOUNT.

Explanation:

There are different types of loan, some are; principal only loan, interest only loan, amortized loan, compound loan, pure discount loan...

A pure discount loan is a loan in which the borrower receives money today and repays a single lump at some time in future. It is the simplest form of loan.

Practically, it means the borrower will not pay any interest over the years; instead the interest is earned when the loan is paid back at maturity.

For example, imagine you wanted to borrow $20,000 and pay back twelve months later. The interest and charges came to $2,000, you would receive $18,000 from the lender. But, you would still have to pay back the whole $20,000.

Therefore, since Cindy will be paying a lump sum equal to the cash amount she received today, it means that the lender already calculated the interest and other related charges and then discounted it from the face amount thereby making it equal at the point of repayment. The option that best suits the question is E, the type of loan PURE DISCOUNT.

timama [110]3 years ago
4 0

Answer:

The correct answer is number (5): Pure discount.

Explanation:

Discount loans are short-term debts calculated with the interest and other charges inherent of the loan based on the face value of the amount being lent. Individuals borrowing this type of loan repay the full amount usually in one lump sum to avoid further interest charges.

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Under the Customer Information Program (CIP) rules, a person's status as a customer equates with account holders. Which activity
Len [333]

Answer:

A

Explanation:

This is because it is only an account under a bank that can purchase a general purpose reloadable prepaid cards with an activated overdraft feature.

6 0
3 years ago
Summarize and contrast how work-based learning benefits the following groups: students, employers, and schools
Misha Larkins [42]
Students learn about how different work places work,and about what sort of work they might enjoy. employers get to "preview" people who might make good workers when they leave school. Schools learn what workplaces are needing from students and can adjust their their curricula to be more relevant.<span />
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3 years ago
When filling out paperwork after you've been hired, you must have a:
lina2011 [118]

i feel either c or d but d is probably wrong because they would have asked you that at the interview and c could be right because they need your social security for taxes so C

8 0
3 years ago
Read 2 more answers
If Shawn can produce donuts at a lower opportunity cost than Sue, then ____
Archy [21]

Answer:

(A) Shawn has a comparative advantage in the production of donuts.

Explanation:

Shawn renounce to less goods than Sue when producing donuts.

This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.

This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn

For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2

While Shawn can produce 8 donuts and resing to produce 8 of other goods:

each donut has an opportunity cost of 1

Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.

4 0
3 years ago
On January 1, Gucci Brothers Inc. started the year with a $705,000 balance in Retained Earnings and a $608,000 balance in common
gtnhenbr [62]

Answer:

Stockholder Equity= $1,414,400

Explanation:

Stockholder Equity is the owners contribution to a business and it is made up of retained earnings and stock.

Stockholder Equity = Common stock + Retained Earnings

Let's track changes in common stock

Common stock= Starting balance + New stocks issued

Common stock= 608,000 + 22,500

Common stock= $630,500

Changes in retained earnings

Retained earnings= Starting balance + Income earned - Dividend paid out

Retained earnings= 705,000 + 93,000- 14,100

Retained earnings= $783,900

Therefore

Stockholder Equity= 630,500+ 783,900

Stockholder Equity= $1,414,400

7 0
3 years ago
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