In addition to the interest rate on his business loan, Paul should also give attention to the
A) maturity date.
B) reserve requirement.
C) tax liability of the loan.
D) LIBOR on the day the loan is approved.

Question

Quizplus · Accepted Answer

The maturity date of a business loan is important because it represents the date on which the loan must be completely repaid. This is an important consideration for a business because it affects the total cost of borrowing and the timing of the cash flow required to repay the loan. Therefore, Paul should pay attention to the maturity date in addition to the interest rate on his business loan.

In Addition to the Interest Rate on His Business Loan