You Are Asked to Lend a Friend $20,000 for a Year

question 141

Multiple Choice

You are asked to lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,000. The interest rate on this loan is

• A) 4.50%
• B) 5.00%.
• C) 5.50%.
• D) indeterminate from this information.

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Definitions:

High-bandwidth

Refers to a transmission capacity of a communication channel that is capable of handling a high rate of data transfer, typically measured in bits per second (bps).

Transmission Speeds

The rate at which data is transferred from one point to another, usually measured in bits per second (bps) or higher units like Mbps (megabits per second).

Wireless Technology

Technologies that enable communication without the need for physical connections, via electromagnetic waves.

Short-range

Typically refers to wireless communication technologies or devices operating over relatively small distances, such as Wi-Fi or Bluetooth.