Ms Smith Borrowed $2,000 at an 8% Stated Rate of Interest

question 31

Multiple Choice

Ms. Smith borrowed $2,000 at an 8% stated rate of interest and was to pay back the loan in 24 monthly payments. What is her effective rate of interest using the installment loan formula?

• A) 10.5%
• B) 15.4%
• C) 18.9%
• D) 22.0%

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Definitions:

Complementary Alternative

Alternative approaches to healthcare and wellness that are used alongside traditional medical treatments to enhance overall health.

Adverse Effects

Unintended, negative reactions or side effects caused by a medication or treatment.

Practice Nurses

Registered nurses who work in general practices, providing a range of healthcare services to patients.

Evidence-based

A decision-making process that relies on data derived from scientific research and high-quality studies to guide actions and policies.