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.

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