Question

Angelo is a corporate financial officer for Zeeteck, a software company. He is trying to get favorable terms for a $50,000 loan for his company to purchase new equipment. He will need to pay close attention to the ____.

A) Net Present Value of obtaining funds today
B) Loan payback period
C) Interest rate on the loan
D) Current average cost of funds

Answer 1

Angelo needs to pay close attention to the interest rate on the loan in order to get favorable terms for the $50,000 loan for his company to purchase new equipment. Angelo should shop around and compare different lenders to find the best interest rate for the loan. The correct answer to the question is C).

Step-by-step explanation:

The correct answer to the question is C) Interest rate on the loan. In order to get favorable terms for a loan, Angelo needs to pay close attention to the interest rate on the loan. The interest rate will determine the cost of borrowing the money for the equipment purchase. A lower interest rate will result in lower monthly payments and overall cost of the loan. Angelo should shop around and compare different lenders to find the best interest rate for the loan.