If the Nominal Interest Rate Is 4

question 48

Multiple Choice

If the nominal interest rate is 4.6% per year, how much money can an individual borrow today if she needs to repay $300 in one year?

• A) $286.81.
• B) $256.81.
• C) $180.81.
• D) $208.81.
• E) $166.81.

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Definitions:

Language Acquisition

The process by which humans acquire the capacity to perceive, produce, and use words to understand and communicate.

Parental Reinforcement

The process by which parents encourage or strengthen specific behaviors in their children through rewards or punishments.

Convergent Thinking

A problem-solving technique that involves focusing on a finite number of solutions rather than proposing multiple possibilities.

Creative Intelligence

A facet of intelligence related to the ability to deal with new situations using creative and innovative solutions and imaginative problem-solving.