You Have the Cash Available to Pay Off a $6500

question 22

Multiple Choice

You have the cash available to pay off a $6500 loan that will cost you $450 in interest this year and you are deciding whether to pay it off or make an investment. If you are in a 30 percent tax bracket, how much interest would you have to earn to make the investment a better decision?

• A)More than $450.
• B)More than $580.
• C)The investment should have a return of 8 percent.
• D)The loan rate is 6.9 percent, so the investment should earn a better rate.

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Definitions:

Paracelsus

A Swiss physician and alchemist of the early Renaissance, known for founding the discipline of toxicology and emphasizing the importance of chemistry to medicine.

Psychic Conflicts

Internal struggles between different parts of the psyche, typically involving the conscious and unconscious mind, leading to mental distress or neurosis.

Hypnotism

A trance-like state of focused attention and increased suggestibility, often used for therapeutic purposes to modify behaviors, perceptions, and psychological distress.

Distress

A negative psychological state that arises from situations of strain or difficulty, causing anxiety or suffering.