Suppose That Interest Payments Are $140 Per Year on a $1,000

question 139

Multiple Choice

Suppose that interest payments are $140 per year on a $1,000 loan and $1,188 per year on an $8,485 loan. The interest rates on the two loans are

• A)14 percent and 20 percent, respectively.
• B)14 percent and 14 percent, respectively.
• C)18.8 percent on both loans.
• D)1.4 percent and 11.8 percent, respectively.

---

Definitions:

Effect Size

A measure that quantifies the strength of the relationship between two variables.

Null Hypothesis

A statement suggesting that there is no significant effect or difference in a given population, serving as a starting assumption for statistical significance testing.

Internal Growth Rate

The maximum rate at which a company can expand using only internally generated financing without resorting to external financing.