MrsRobinson Borrows $5,000 for 90 Days and Pays $80 Interest

question 96

Multiple Choice

Mrs.Robinson borrows $5,000 for 90 days and pays $80 interest.What is her annual rate of interest?

• A) 1.6%
• B) 6.49%
• C) 12.98%
• D) 6.40%

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Definitions:

Labor Underutilization

A situation where available labor resources are not being used efficiently, leading to unemployment or underemployment.

Discouraged Workers

Individuals who are not actively seeking employment due to believing there are no jobs available for them.

Marginally Attached Workers

Individuals not in the labor force who want and are available to work but have not searched for a job in the past 4 weeks, hence are not counted as unemployed in labor force statistics.