Sam Jones Has an Engineering Firm

question 11

Multiple Choice

Sam Jones has an engineering firm.He wants to build a new headquarters building.The building will cost $1,500,000.He will put down $450,000 and have a bank finance the remainder at prime plus 2 percent.The prime lending rate is currently 8.5 percent.Sam will withdraw the money for the down payment from his mutual fund account where he has earned 13% for the last ten years.What percentage of the building is being financed by the bank?

• A)13%
• B)70%
• C)10.5%
• D)30%

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Definitions:

Satiate

To satisfy a need or desire fully or to excess.

Nonverbal Communication

The process of conveying a message without the use of words, which can include facial expressions, body language, gestures, and visual cues.

Precision

The quality of being exact, accurate, and careful about details.

Self-Disclosure

The act of revealing personal information about oneself to others, which can play a crucial role in developing intimacy and trust in relationships.