"Margaret has $3,200 cash after selling off her television, DVD player, and computer. She has debts of $4,800 owing to the follo

Question

2 years ago

6

"Margaret has $3,200 cash after selling off her television, DVD player, and computer. She has debts of $4,800 owing to the follo

wing creditors: Anna-$900 Bob's Shop-$1,500 Hyatt's-$2,100 Jones-$300 If they all agree to a composition agreement, how much will Hyatt's be able to collect?"

Computers and Technology

1 answer:

serg [7] · Answer 1 · 2022-06-07T01:27:47+03:00

Answer: Hyatt's will be able to collect $1,365

Explanation: Composition Agreement is a kind of agreement reached between a debtor and its creditors. it a kind of agreement whereby the debtor and creditors agree to collect a percentage of their debts to fully settle their debts from the creditor.

For instance Margaret with a cash of $3,200 to settle a debt of $4,800.

In this case Margaret can decide to pay 65% of the total debts to settle the final debts. Here, Hyatt's will be able to collect $1,365 as full settle of his debt.