Bad Guys Plc Is Notoriously Known as a Slow-Payer

question 27

Multiple Choice

Bad Guys plc is notoriously known as a slow-payer.It currently needs to borrow £25,000 and only one company will even deal with Bad Guys.The terms of the loan call for daily payments of £30.76. The first payment is due today.The interest rate is 21% compounded daily.What is the time period Of this loan?(Assume 365 days in a year.)

• A)2.88 years
• B)2.94 years
• C)3.00 years
• D)3.13 years
• E)3.25 years

---

Definitions:

Alpha

In statistics, it denotes the significance level used in hypothesis testing, typically set to 0.05 or 5%, representing the probability of rejecting the null hypothesis when it is actually true.

Likelihood

The probability of a particular outcome given a set of parameters within a statistical model.

Binomial Variable

A type of discrete variable that can take one of two independent values, often representing success or failure in an experiment.

Woman

A female human adult.