Question content area top Part 1 You just took out a variable-interest-rate consumer loan set at 33 percent over prime. After 1 year, your rate jumps to 44 percent over prime. Treasury bills are currently paying 22 percent. What is the new interest rate on your consumer loan? Question content area bottom Part 1 The new interest rate on your consumer loan is: (Select the best answer below.) A. 99 percent, which is the Treasury bill rate (prime), plus your original rate over prime, plus 44 percent. B. 66 percent, which is the Treasury bill rate (prime) plus 44 percent. C. 55 percent, which is the Treasury bill rate (prime) plus 33 percent. D. 77 percent, which is your original rate over prime plus 44 percent.
Question content area top Part 1 You just took out a variable-interest-rate consumer loan set at 33 percent over prime. After 1 year, your rate jumps to 44 percent over prime. Treasury bills are currently paying 22 percent. What is the new interest rate on your consumer loan? Question content area bottom Part 1 The new interest rate on your consumer loan is: (Select the best answer below.) A. 99 percent, which is the Treasury bill rate (prime), plus your original rate over prime, plus 44 percent. B. 66 percent, which is the Treasury bill rate (prime) plus 44 percent. C. 55 percent, which is the Treasury bill rate (prime) plus 33 percent. D. 77 percent, which is your original rate over prime plus 44 percent.
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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Question content area top
Part 1
You just took out a variable-interest-rate consumer loan set at
33
percent over prime. After 1 year, your rate jumps to
44
percent over prime. Treasury bills are currently paying
22
percent. What is the new interest rate on your consumer loan?Question content area bottom
Part 1
The new interest rate on your consumer loan is: (Select the best answer below.)
99
percent, which is the Treasury bill rate (prime), plus your original rate over prime, plus
44
percent.66
percent, which is the Treasury bill rate (prime) plus
44
percent.55
percent, which is the Treasury bill rate (prime) plus
33
percent.77
percent, which is your original rate over prime plus
44
percent.AI-Generated Solution
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