If $22,050 Is the Amount Payable in Two Years for a $20,000

question 91

Multiple Choice

If $22,050 is the amount payable in two years for a $20,000 simple loan made today,the interest rate is

• A)5 percent.
• B)10 percent.
• C)22 percent.
• D)25 percent.

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Definitions:

Individual Shops

Small retail outlets owned or operated by individuals or families, often offering specialized goods or services.

Forward Auctions

Auctions that sellers use as a selling channel to many potential buyers; the highest bidder wins the items.

Lower Prices

A pricing strategy adopted by businesses to attract more customers by offering goods or services at reduced costs compared to competitors.

Group Purchasing

The aggregation of purchasing orders from many buyers so that a volume discount can be obtained.