You are considering the purchase of a BMW M5. You will borrow the ...

[burchfield96]

You are considering the purchase of a BMW M5. You will borrow the money from BMW Financial Services. The terms of the deal are outlined below.
 
  BMW M5
  RWD, 500hp, 0-100 in 4.7s
  PRICE = 80,000
  Term = 36 months
  i = 4.0
  Down Payment = 0
  Monthly Payments (end-of-month) = 2,361.92
  How much interest does the borrower pay over the term of the loan? In other words, how much of the blended loan payments is interest?
  A) 5,029.08
  B) 3,401.17
  C) 3,200.00
  D) 5,561.92
  E) 5,763.09

Question 2

The hiring process for an investment banker can happen in two ways. Which of the below is one of these ways?
 
  A) Randomly choose an investment banking firm from a list of underwriting firms.
  B) Pick a desirable investment banking firm, usually basing the choice on the reputation and history of the banker in its particular industry.
  C) Have the primary government regulator of your industry choose the best investment banking firm for your company.
  D) Solicit advice from a government agency and use it as your primary guide in choosing an investment banker.

[wilsonbho]

Answer to Question 1

A

Answer to Question 2

Answer: B
Explanation: B) A company can simply pick a desirable investment banking firm, usually basing the choice on the reputation and history of the banker in its particular industry, or it can solicit bids from many investment bankers. The most common practice for corporations is the hand-picked selection process, and the most common for government agencies is the multiple-bidder selection process.