Initial Interest Rate ? Loan Maturity (years) 20 % Margin Above Index 3% Adjustment Interval Points Interest Rate Cap Loan 4 LOAN 1 LOAN 2 LOAN 3 LOAN 4 ? ? 20 20 3% 3% 1 year 1 year 1% 1% 1%/year 3%/year Loan 1 Loan 2 1 year 1% NONE ? 20 - - Using the information in the above table, select the loan with the lowest interest rate. Loan 3 1% -

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Trade Credit

Answer- a- Before Shipping of goods