What is the advantage of a variable-interest loan? Protects the borrower from rising interest rates Makes it easier for the borrower to plan for future payments Borrower can capitalize on a reference rate decrease Reduces the total interest payments

What is the advantage of a variable-interest loan? Protects the borrower from rising interest rates Makes it easier for the borrower to plan for future payments Borrower can capitalize on a reference rate decrease Reduces the total interest payments

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6Q

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Question

What is the advantage of a variable-interest loan?
Protects the borrower from rising interest rates
Makes it easier for the borrower to plan for future payments
Borrower can capitalize on a reference rate decrease
Reduces the total interest payments

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