Solving for Rates What Annual Rate of Return Is Implied

question 34

Multiple Choice

Solving for Rates What annual rate of return is implied on a $1,000 loan taken next year when $1,500 must be repaid in year 5?

• A) 8.45%
• B) 10.00%
• C) 10.67%
• D) 12.50%

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Definitions:

Community College

A type of educational institution providing higher education and lower-level tertiary education, granting certificates, diplomas, and associate degrees.

Comparative Advertising

A marketing strategy where a brand compares its product directly to a competitor's product to highlight its advantages.

Hard-Working

Characterized by a strong dedication and commitment to completing tasks and achieving goals with considerable effort.