A friend claims to have found a really great deal at a local loan agency without a street address: The agency claims that its rates are so low you can borrow $20,000 with a term of three years for a monthly payment of $500. Is this too good to be true? Be sure to explain your answer. Yes, the deal is too good to be true. Using the Estimation Rule for Short-Term Loans, the payments must be at least $555.56. No, the deal is not too good to be true. Using the Estimation Rule for Short-Term Loans, the payments can be no more than $555.56.
A friend claims to have found a really great deal at a local loan agency without a street address: The agency claims that its rates are so low you can borrow $20,000 with a term of three years for a monthly payment of $500. Is this too good to be true? Be sure to explain your answer. Yes, the deal is too good to be true. Using the Estimation Rule for Short-Term Loans, the payments must be at least $555.56. No, the deal is not too good to be true. Using the Estimation Rule for Short-Term Loans, the payments can be no more than $555.56.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A friend claims to have found a really great deal at a local loan agency without a street address: The agency claims that its rates are so low you can borrow $20,000 with a term of three years for a monthly payment of $500. Is this too good to be true? Be sure to explain your answer.
Yes, the deal is too good to be true. Using the Estimation Rule for Short-Term Loans, the payments must be at least $555.56.
No, the deal is not too good to be true. Using the Estimation Rule for Short-Term Loans, the payments can be no more than $555.56.
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