What Annual Rate of Return Is Implied on a $5,000

question 51

Multiple Choice

What annual rate of return is implied on a $5,000 loan taken next year when $7,700 must be repaid in year 8?

• A) 6.36 percent
• B) 7.12 percent
• C) 8.54 percent
• D) 11.62 percent

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Definitions:

Text Messages

Brief written messages exchanged via mobile devices, utilizing SMS (Short Message Service) technology.

Cell Phone

A portable electronic device that combines mobile telephone and computing functions.

Car Radio

An electronic device installed in vehicles for receiving radio signals, enabling the listening of music, news, and other audio while driving.

Vehicle Conversation

Dialogues or discussions that occur between passengers or between a driver and passengers within a vehicle.