Answer:
Ponzi scheme
Explanation:
Ponzi scheme is a fraud investment strategy that promises to pay a substantial sum of returns. In a Ponzi scheme, generate income for the old investor by using the money of the newest investor and this chain goes on. This is basically a fraudulent scam or investment strategy to get a significant amount of money. Ponzi scheme is similar to pyramid strategy both are based on using new investor’s fund.
The answer to this question is the term prices. Prices are the value of a certain product or services. A price is the value or amount of money being paid in exchange of the product being bought. In pricing a product or service, a markup is being set to the price.
keeping track of bills sent to customers
keep track of after sale services owed to customers
Listening, checking for understanding
Answer:
Bank X will received: $13,554.73.
Explanation:
* Calculation of Betty equal monthly repayment by using present value formula for annuity: 19,800 = PMT/1% x ( 1 - 1.01^-36) <=> PMT = $657.643
* The effective annual rate at the time of loan selling is calculated as: (1+14%/2)^2 - 1 = 14.49% => The monthly discount rate is 1.1449 ^(1/12) -1 = 1.134%
After the 16th payment is made, there is another 20 equal repayments, made at the end of each months; so we have 20 discounting periods, PNT = 657.643; discounting rate = 1.134%
=> Price Bank X receives = Present value of the repayment stream = 657.643/0.0134 x [1 - 1.0134^(-20)] = $13,554.73.
