Suppose You Borrow $1,000 Today with the Promise to Pay

question 45

Multiple Choice

Suppose you borrow $1,000 today with the promise to pay back $1,100 one year from today.Then the interest rate is __________,and the interest is __________.

• A) 1 percent; $60
• B) 10 percent; $1,100
• C) 5 percent; $100
• D) $100; 10 percent
• E) 10 percent; $100

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Definitions:

Withdrawal Symptoms

Physical or psychological symptoms that occur after stopping or reducing intake of a substance that was used habitually.

Hypnosis

A mental state of highly focused concentration, diminished peripheral awareness, and increased suggestibility.

Mesmerism

An early form of psychotherapy involving the practice of hypnotism, originally proposed by Franz Mesmer in the 18th century, based on the belief in animal magnetism.

Trancelike State

A state of consciousness resembling trance, often induced by hypnosis, meditation, or other means, where a person may have heightened suggestibility and focus.