You Lend a Friend $10,000 for a Year

question 44

Multiple Choice

You lend a friend $10,000 for a year. At the end of the year your friend agrees to pay you $10,700. The interest rate on this loan is

• A) 0.07%.
• B) 7.00%
• C) 107%.
• D) indeterminate from this information.

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Definitions:

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country, such as defense, foreign policy, and currency regulation.

Political Rhetoric

The art of persuasive speaking or writing, often utilized by politicians and public leaders to influence public opinion, advocate for policies, or articulate visions and ideals.

Revolution

A fundamental change in political power or organizational structures that takes place in a relatively short period of time, often accompanied by violence or the overthrow of an existing government.

Betrayed

An act of disloyalty or treachery, violating trust or faith.