-In the Accompanying Figure,in the Formula in the Active Cell,why

question 41

Multiple Choice

-In the accompanying figure,in the formula in the active cell,why is cell D6 divided by 12?

• A) To convert the annual interest rate to a monthly interest rate.
• B) To convert the number of payments to a monthly value.
• C) To convert the amount borrowed to a monthly value.
• D) To determine how much interest is paid each month.

---

Definitions:

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure a debt or loan, affording the lender a right to repossession if the debtor defaults.

Debtor's Property

Assets owned by an individual or entity (debtor) that owe money to creditors, which may be subject to claims or liens.

Debtor Defaults

Occurs when a debtor fails to meet the legal obligation of debt repayment, potentially leading to legal action or loss of collateral.

Repossesses Collateral

The act of taking back possession of property used as collateral in a loan agreement, typically after a default by the borrower.