You Lend a Friend $20,000 for a Year

question 64

Multiple Choice

You lend a friend $20,000 for a year. At the end of the year your friend agrees to pay you $21,100. 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:

Union Leader

An individual who represents and defends the interests of a group of workers, helping to negotiate terms of employment such as wages and working conditions with employers.

Strategic View

An approach to decision-making that considers the long-term direction and implications of actions taken by an organization.

Bargaining

The negotiation process between two or more parties to reach a mutually acceptable agreement.

Game Theory

A theoretical framework for conceiving social situations among competing players, in which the outcome of a participant's choice of action depends critically on the actions of other participants.