× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
r
4
L
4
3
d
3
M
3
l
3
V
3
s
3
d
3
a
3
g
3
j
3
Home Q & A Board Other Fields Homework Help Business Management
New Topic  
MADUBUCA76 MADUBUCA76
wrote...
Go to Answer
Posts: 620
Rep: 0 0
6 years ago
A customer has approached a local credit union for a 20,000 1-year loan at a 10 interest rate. If the credit union does not approve the loan application, the 20,000 will be invested in bonds that earn a 6 annual return. Without additional information, the credit union believes that there is a 5 chance that this customer will default on the loan, assuming that the loan is approved. If the customer defaults on the loan, the credit union will lose the 20,000.
  The bank can thoroughly investigate the customers credit record and obtain a favorable or unfavorable recommendation. If the credit report is perfectly reliable, what is the most the credit union should be willing to pay for the report?
Read 96 times
1 Reply
Replies
Answer verified by a subject expert
Alphabet!Alphabet!
wrote...
#1
Top Poster
Posts: 920
Rep: 5 0
6 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

MADUBUCA76 Author
wrote...

6 years ago
Brilliant ツ
larrybrads
wrote...

Yesterday
This site is awesome
byehoe
wrote...

2 hours ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1870 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Related Images
  
 1226
  
 368
  
 299