No Tree Too Tall, Inc

question 5

Multiple Choice

No Tree Too Tall, Inc.is planning to borrow $12,000 from the bank.The bank offers the choice of a 12 percent discount interest loan or a 10.19 percent add-on, one-year installment loan, payable in 4 equal quarterly payments.What is the effective rate of interest on the 10.19 percent add-on loan?

• A) 9.50%
• B) 10.19%
• C) 15.22%
• D) 16.99%
• E) 22.05%

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Definitions:

Antibiotics

Medications used to treat bacterial infections by inhibiting the growth of or destroying bacteria, pivotal in the field of medicine for controlling infectious diseases.

Growth Rate

The rate at which a particular variable, such as an economy or a population, increases over a specified period.

Net Migration

Net effect of immigration and emigration on a particular population; expressed as an increase or decrease.

Demography

Study of the size, composition, distribution, and changes in human population.