Suppose That You Borrow $10,000 for Two Years, and at the End

question 81

Multiple Choice

Suppose that you borrow $10,000 for two years, and at the end of the second year, you must repay $11,664. The interest rate is

• A) 16.7 percent.
• B) 8.0 percent.
• C) 7.0 percent.
• D) 9.0 percent.

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Definitions:

Property Transfer

The act of changing ownership of real estate or personal property from one person or entity to another.

Fraud Or Duress

refers to unlawful pressure or deceit used to coerce someone into a contractual agreement, compromising the agreement's validity.

Bequest

A transfer of personal property through a will.

Legacy

A bequest; a testamentary gift of personal property. Sometimes incorrectly applied to a testamentary gift of real property.