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:

Track Records

Histories or records of performance or achievements, often used to assess reliability or competence.

Personal Strivings

An individual's efforts to achieve personal goals that express their self-identity.

Personal Projects

Refers to the self-initiated and organized tasks or goals that an individual pursues, reflecting personal values and aspirations.

Panic Button Effect

The psychological response or relief felt when an individual believes they have an immediate means of escape or help in a stressful situation.