You are negotiating a loan with a bank officer. The loan is at a moderate interest rate, and the term of the loan is six months. The bank officer tells you your monthly payment. Explain how you can quickly check whether or not the figure the bank officer gave you is reasonable. Choose the best answer. O Multiply the interest rate by 100 and divide by 6. This should be the approximate amount of the payment. O Divide the loan amount by 6. This is the maximum you will be paying. O Move the decimal point one place to the left. This is a reasonable estimate. Divide the loan amount by 6. This is the minimum you will be paying.
You are negotiating a loan with a bank officer. The loan is at a moderate interest rate, and the term of the loan is six months. The bank officer tells you your monthly payment. Explain how you can quickly check whether or not the figure the bank officer gave you is reasonable. Choose the best answer. O Multiply the interest rate by 100 and divide by 6. This should be the approximate amount of the payment. O Divide the loan amount by 6. This is the maximum you will be paying. O Move the decimal point one place to the left. This is a reasonable estimate. Divide the loan amount by 6. This is the minimum you will be paying.
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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Transcribed Image Text:You are negotiating a loan with a bank officer. The loan is at a moderate interest rate, and the term of the loan is six months. The bank officer tells you your monthly payment. Explain how
you can quickly check whether or not the figure the bank officer gave you is reasonable. Choose the best answer.
O Multiply the interest rate by 100 and divide by 6. This should be the approximate amount of the payment.
O Divide the loan amount by 6. This is the maximum you will be paying.
O Move the decimal point one place to the left. This is a reasonable estimate.
O Divide the loan amount by 6. This is the minimum you will be paying.
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