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%

---

Definitions:

Multiple-Hurdle Model

A personnel selection approach where candidates must pass several evaluation stages or "hurdles" to be considered for employment.

HR Personnel

Individuals working within the human resources department, responsible for managing recruitment, employee relations, and organizational development.

Final Interview

The last step in the interview process where a candidate meets with key decision-makers before a hiring decision is made.

Behavior Description

A method used in interviews asking candidates to describe past behavior as evidence of their ability to perform in a specific situation.