You Are Considering Two Loans

question 78

Multiple Choice

You are considering two loans.The terms of the two loans are equivalent with the exception of the interest rates.Loan A offers a rate of 7.45% compounded daily.Loan B offers a rate of 7.5% compounded semi-annually.Loan _____ is the better offer because______.

• A)A; you will pay less interest
• B)A; the annual percentage rate is 7.45%
• C)B; the annual percentage rate is 7.64%
• D)B; the interest is compounded less frequently
• E)B; the annual percentage rate is 7.64% .

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Definitions:

Management-By-Objectives

Management-By-Objectives is a performance management approach where employees and managers define and agree on specific objectives to be achieved within a timeframe.

Performance Appraisal

A systematic evaluation process by which an employee's job performance is assessed, often influencing promotions, pay raises, and development.

Factors

elements or components that contribute to a particular outcome or situation.

Employee's Decision

The choices made by an employee regarding their job and career path, including job acceptance, resignation, or retirement.