A Certain Loan Category Has a 2

question 67

Multiple Choice

A certain loan category has a 2.1% default rate and defaulted loans have a -10% return. Loans that don't default earn whatever rate the bank charges. If the lending bank wishes to earn a 4.5% average return on this loan category, including defaulted loans, what rate must the bank charge each borrower?

• A) 4.752%
• B) 4.811%
• C) 4.925%
• D) 4.756%

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Definitions:

Roosevelt

Refers to either Theodore Roosevelt, the 26th President known for his progressive policies and conservation efforts, or Franklin D. Roosevelt, the 32nd President who led the U.S. during the Great Depression and World War II.

Wilson

Refers to Woodrow Wilson, the 28th President of the United States, known for leading the country during World War I and advocating for the League of Nations.

Civil Liberties

Fundamental rights and freedoms protected by law from governmental interference or restriction, including freedom of speech, assembly, and religion.

American Women

Females belonging to or residing in the United States, contributing to its society, culture, and history in diverse ways.