A Borrower Who Has to Pay an Interest Rate of 8

question 75

Multiple Choice

A borrower who has to pay an interest rate of 8% rather than 6% due to risk spread will pay:

• A) $20 more in interest annually for every $100 borrowed.
• B) 33.3% higher interest in dollar terms.
• C) 2% in net interest.
• D) less interest in total over the life of the loan.

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Definitions:

Mail Survey

A research method involving the distribution of questionnaires sent through the postal service to collect data from respondents.

Sample Size

The number of subjects or units chosen from a population to participate in a study.

Accurate

A term describing the closeness of a measurement to the true value or the degree of accuracy of a measurement or process.

Sample Estimates

Statistical values calculated from a sample that estimate corresponding parameters in the population from which the sample is drawn.