Kenneth's Arrows and Bows Borrow $15,000 for One Year at 8

question 90

Multiple Choice

Kenneth's Arrows and Bows borrow $15,000 for one year at 8% interest. What is the effective rate of interest if the loan is discounted?

• A)Less than 8.5%
• B)More than 8.5% but less than 9.5%
• C)More than 9.5% but less than 10.5%
• D)More than 10.5%