Brain Teasers
The Loan
A wealthy but thrifty man is applying for a loan at a bank. The man says that he would like to take out a $1,000 loan, and that to save paperwork he would like to just leave his BMW with the bank as collateral. The loan officer thinks that it is odd that such a wealthy man would take out such a small loan, but sees no reason to reject the loan.
A month later the man returns, pays off the loan in full (plus a month's interest), and is returned his car. Why did he take out this loan?
A month later the man returns, pays off the loan in full (plus a month's interest), and is returned his car. Why did he take out this loan?
Answer
The man, who is quite thrifty (and clever) was going on a month-long trip overseas and didn't want to pay a parking fee for that time. He got the bank to hold his car for the entire month for about $6 (assuming 7% interest).Hide Answer Show Answer
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Comments
Very clever!
Apr 27, 2002
I've always enjoyed this one - but I do wonder if a bank would really operate this way. If so - do you think they would take my kids as collateral? Cheap babysitting!
Fun, fun, fun.. I loved it!
Just like the beer commercial.
very good one, heard it before, loved seeing it again.
if he was rich, then why didn't he want to pay the parking lot fee?
oh well, it was still a good one.
oh well, it was still a good one.
Great teaser thanks for posting it, keep'em coming
He's rich but doesn't have a driveway?
I figured it was either that the bank offered a better rate than he was already paying, so he does that to pay $1000 on his other loan, save the difference in interest. Or he does that to get $1000 to invest in a way that will pay a higher rate of return than the intetest the bank charges.
I figured it was either that the bank offered a better rate than he was already paying, so he does that to pay $1000 on his other loan, save the difference in interest. Or he does that to get $1000 to invest in a way that will pay a higher rate of return than the intetest the bank charges.
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