If a Borrower Promises to Pay You $1,900 9 Years

question 43

Multiple Choice

If a borrower promises to pay you $1,900 9 years from now in return for a loan of $1,000 today,what effective annual interest rate is being offered?

• A) 5.26%
• B) 7.39%
• C) 9.00%
• D) 10.00%

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