You Take Out a 2-Year, $5,000 Loan at 7% Simple $r = 100 \%$

question 7

Multiple Choice

You take out a 2-year, $5,000 loan at 7% simple annual interest. The lender charges you a $300 fee. Thinking of the fee as additional interest, what is the actual annual interest rate you will pay Round answer to the nearest 0.001% .

• A) \(r = 100 \%\)
• B) \(r = 2.06 \%\)
• C) \(r = 6 \%\)
• D) \(r = 10 \%\)
• E) \(r = 0.127 \%\)

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Definitions:

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The phase of the heart cycle in which the ventricles contract, pumping blood out of the heart to the lungs and the rest of the body.

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Initiate Blood Clots

The process of starting the coagulation cascade, which leads to the formation of a blood clot to stop bleeding.