Description
Week 2
Principles of Finance
Part 1
Discussion Prompt 1-3 Paragraphs
Describe the roles of the different types of financial institutions. Identify which ones you or your family have interactions with and why.
Part 2
Week 2 Assignment: Standard and Discounted Loans
You are the CEO of a hospital and you need to finance new advanced equipment that will cost $100,000. You have the option of a $100,000 standard loan or a discounted loan, both at a 4% annual rate with a one-year maturity date.
In a one- to three-page paper, explain the difference between a standard loan and a discounted loan. What would the effective rate be for the discount loan? Identify which loan you would choose and the reasons why. Would your decision change if the equipment only cost $95,000? Why or why not?
Your paper must follow APA Style formatting throughout.
Explanation & Answer
Your assignment is complete.
Name:
Institution:
Principles of Finance APA Style Question Outline
1. 1st Paragraph
➢ Financial Institutions
•
Types of financial institutions
2. 2nd and 3rd Paragraph
➢ Standard and Discounted Loans
Running head: PRINCIPLES OF FINANCE
Principles of Finance APA Style Question
Students Name
Institution Name
1
PRINCIPLES OF FINANCE
2
Part 1
Financial Institutions
Financial institutions are corporations that grant financial services. There exist several
financial institutions with varying roles. The first type is of such institutions are banks, which are
institutions that accept deposits, provide loans, and invest in securities. The second type of
financial institution is the credit unions who have a similar service as a bank in te...
24/7 Study Help
Stuck on a study question? Our verified tutors can answer all questions, from basic math to advanced rocket science!