What Annual Rate of Return Is Implied on a $1,000

question 133

Multiple Choice

What annual rate of return is implied on a $1,000 loan taken next year when $1,500 must be repaid in year 5?

• A) 8.45 percent
• B) 10.00 percent
• C) 10.67 percent
• D) 12.50 percent

---

Definitions:

Pragmatic Leaders

Leaders who are practical, focusing on solutions and results that work under the current conditions, often adapting flexibly to changing environments.

Transactional Leadership

A leadership style focused on the exchange process between leaders and followers, where followers are rewarded for their compliance and performance.

Exchanging Benefits

The act of mutually providing or receiving advantages or resources between parties, often seen in relationships or negotiations.

Charismatic Leadership

A leadership style where the leader inspires and motivates followers through their personal charisma, vision, and ability to evoke strong emotions.