If Your Bank Gives You a $2,000 Loan at 8

question 122

Multiple Choice

If your bank gives you a $2,000 loan at 8% per year, but deducts the interest in advance, is 8% the "real" rate of interest that you will pay?

• A) There is not enough information to answer this question accurately.
• B) Yes.
• C) No. The interest rate is actually higher than 8 percent.
• D) No. The interest rate is actually lower than 8 percent.

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Definitions:

Socioemotional Selectivity

A theory suggesting that as people age, they become more selective about their social networks, focusing on emotionally meaningful relationships and experiences.

Civic Engagement

Participation in activities or efforts that aim to address issues of public concern and contribute to the well-being of the community.

Mortality

The state of being subject to death or the incidence of death within a population.

Elderly Women

Women of an advanced age, usually considered to be those aged 65 and older, who may experience unique social, health, and economic challenges.