Final answer:
Cindy is taking a pure discount loan, which involves receiving a sum of money today and paying back a lump sum at a future date, with the present value being equal to the loan amount received.
Step-by-step explanation:
The type of loan Cindy is taking out, where the cash amount she receives today is equal to the present value of the lump sum she will pay in two years, is known as a pure discount loan. In this type of financing, the borrower receives money today and repays a single lump sum at a future date. This transaction is essentially about moving money over time with the consideration of an interest rate, which in this case is implied by the present value calculation.
The type of loan that Cindy is taking out is a Pure discount loan. In a pure discount loan, the borrower receives a lump sum of money today and is required to repay the same amount as a lump sum payment in the future. There is no interest or principal repayment over time in a pure discount loan.The type of loan that Cindy is taking out is a Pure discount loan. In a pure discount loan, the borrower receives a lump sum of money today and is required to repay the same amount as a lump sum payment in the future. There is no interest or principal repayment over time in a pure discount loan.