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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?


Definitions:

Ready

Being in a suitable state for an activity, action, or situation; fully prepared.

Item

An individual article or unit, especially one that is part of a list, collection, or set.

Numeric Filing System

An organizational method that arranges files or records in order of assigned numbers.

Confidentiality

A principle that emphasizes the privacy of personal information, ensuring that it is shared only with authorized parties.

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