ENTREPRENEURSHIP

ENTREPRENEURIAL FINANCE

SOURCES OF FUNDING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Interest would always need to be paid on which of the following sources of finance?

A	A new share issue
B	A loan from family and friends
C	A mortgage
D	A government grant

Explanation:

Detailed explanation-1: -An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

Detailed explanation-2: -The interest rate for each different type of loan depends on the credit risk, time, tax considerations, and convertibility of the particular loan.

Detailed explanation-3: -The interest you will pay for your home loan is calculated based on the amount of money you have borrowed (principal) multiplied by your interest rate. Since APR is calculated by year, we will then divide this amount by 365 (or 366 for leaps years) days.

There is 1 question to complete.