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Note: Spread= (interest rate paid in the bank account) - (car loan interest rate) Group of answer choices Spread= 1%-4%= -3% Spread= 6%-4%= 2% Spread=
Note: Spread= (interest rate paid in the bank account) - (car loan interest rate) Group of answer choices Spread= 1%-4%= -3% Spread= 6%-4%= 2% Spread= 2%-4%= -2% Spread= 5%-4%= 1% Multiply the percentage point difference (spread) times the cost of the car. What figure do you get? Group of answer choices (Spread) x (Cost of the car)= .06 x $20,000 = $1,200 (Spread) x (Cost of the car)= -.02 x $20,000 = -$400 (Spread) x (Cost of the car)= -.03 x $20,000 = -$600 (Spread) x (Cost of the car)= .05 x $20,000 = $1,000 What do you think is causing the Economic Net Benefit(Car Loan) to be negative? The percentage point difference (spread) between the interest paid rate in the bank account and the car loan interest rate The difference between the Accounting Net Benefit(No Car Loan) and the MB(Car Loan). The difference between the Accounting Net Benefit(Car Loan) and the MB(Car Loan). None of the available answers
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