The most appropriate time for the customer to negotiate the interest rate on a new lending product is: 

1. When the customer is booking the appointment to apply for a loan. 
2. When the customer signs all the loan documentation related to the loan. 
3. At the time the loan application is being taken. 
4. When the Lending Institution contracts the customer to inform them that they are approved for the loan. 

 

Two years ago Navjeet obtained a fixed repayment car loan from Everyday Bank for $10,000.000 to purchase a used vehicle. Her monthly payments are $250 and the current balance of the loan is $5,000. Navjeet just sold the car for $6,000.00 and she is planning to pay off the loan with the money she received. The interest rate on her loan is 7.5% and she has 2 years left in the term of the loan. The current rates on a 2 year car loan are 5%. 

How much will Navjeet be required to pay in penalty? 

Answer rating: 100% (QA)

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