If the Nominal Interest Rate Is 20% Per Year,how Much

question 55

Multiple Choice

If the nominal interest rate is 20% per year,how much money can an individual borrow today if she wants to repay $100 in one year?

• A)$80.00
• B)$83.33
• C)$120.00
• D)$78.00
• E) $121.00

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Definitions:

Lead

A toxic metal that can cause harmful effects when absorbed by the body, historically used in products like paint and gasoline.

Reticular Formation

A complex network of neural pathways in the central region of the brainstem that plays a key role in regulating alertness and sleep-wake cycles.

Stressors

Factors or events that trigger physical or psychological strain or tension.

Cocaine

A powerful stimulant drug derived from the leaves of the coca plant, commonly used recreationally and, historically, as a local anesthetic.