If it is given that the loan amount is $130.00, the percent stock requirement is

Question

If it is given that the loan amount is $130.00, the percent stock requirement is .02, and the credit fee is $18.76.

(i)        Calculate the loan principal.
            a.         $152.47                      b.         $153.37
            c.        $151.79                     d.         $152.44

Enter Response Here:

(ii)       Calculate the required stock purchase.
            a.         $2.66                b.       $3.04
            c.          $4.51               d.         $3.62

Enter Response Here:

Explanation / Answer

i) Loan amount is $130.00 $ 130.00 The credit fee $ 18.76 Total $148.76 Percent stock requirement is .02 Therefore , loan principal = $ 148.76/(1.00-0.02) = $ 151.79 The Correct option is     c. $151.79   ii) Required stock purchase = $ 148.76 * 0.02/(1-0.02) . = $ 3.04 The Correct option is     b. $ 3.04

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