Ms Smith Borrowed $1,250 at a 11% Stated Rate of Interest

question 94

Multiple Choice

Ms. Smith borrowed $1,250 at a 11% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her annual rate of interest?

• A) 10.56%
• B) 21.12%
• C) 18.96%
• D) 22.00%

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Definitions:

Intimacy

Close acquaintance and familiarity; a characteristic of a relationship in which partners share their innermost feelings.

Stereotyping

The act of assigning a set of characteristics to all members of a group, regardless of individual differences, often based on oversimplified ideas or prejudices.

In-Groups

Social or psychological groups to which an individual feels a sense of belonging or identity.

Attitude Formation

The process by which people develop their outlooks and preferences based on experiences, emotions, and external influences.