MsSmith Borrowed $1,250 at an 11% Stated Rate of Interest

question 110

Multiple Choice

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

• A) 10.56%
• B) 11.60%.
• C) 18.96%
• D) 22.00%

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Definitions:

Decision-Making

The process of making choices by identifying decisions, gathering information, and assessing alternative resolutions.

Rewards

Rewards are benefits, compensations, or acknowledgments given in response to actions or behaviors deemed desirable or commendable.

George Homans

An American sociologist known for his work in developing social exchange theory.

Success

The achievement of a goal or the attainment of higher status or position, often measured by factors such as wealth, respect, or fame.