Question
A loan has an APR of 8.5percent and an EAR of 8.5 percent. Given this, the loanmust: A. have a one-yearterm. B. have a zero
A loan has an APR of 8.5percent and an EAR of 8.5 percent. Given this, the loanmust:
A.
have a one-yearterm.
B.
have a zero percent interestrate.
C.
charge interestannually.
D.
must be an interest-onlyloan.
E.
require the accrued interestbe paid in full with each monthly payment.
A loan has an APR of 8.5percent and an EAR of 8.5 percent. Given this, the loanmust:
A. | have a one-yearterm. |
B. | have a zero percent interestrate. |
C. | charge interestannually. |
D. | must be an interest-onlyloan. |
E. | require the accrued interestbe paid in full with each monthly payment. |
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
