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:

Goals

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Bandura's Theory

A concept developed by Albert Bandura that outlines the importance of observational learning, self-efficacy, and modeling in understanding human behavior.

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Lent And Brown

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