3. The average interest rate on deposit accounts is 3% for five-year certificates of deposit. A low-risk
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3. The average interest rate on deposit accounts is 3% for five-year certificates of deposit. A low-risk customer with a nearly zero default risk comes into the bank and wants to purchase a car and finance it over five years. What is the interest rate this customer can expect to pay on the loan, assuming the bank wants a 4% spread? (LO 5-1)
a. 5%
c. 7%
b. 6%
d. 8%
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Related Book For
Personal Finance Building Your Future
ISBN: 9780077861728
2nd Edition
Authors: Robert Walker, Kristy Walker
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