Beverly Frickerson Asks for a $15,000 Loan for One Year

question 114

Multiple Choice

Beverly Frickerson asks for a $15,000 loan for one year.The bank tells her that it will give her $13,050 and deduct $1,950 in interest upfront.What is the effective rate of interest on this loan?

• A)14.94 percent
• B)13.00 percent
• C)19.50 percent
• D)11.50 percent
• E)None of the options is correct

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Definitions:

Logical Analysis

The systematic examination of arguments and statements through reasoning to assess their validity and infer conclusions.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, involving complex thought processes like analysis and synthesis.

Cognitive A-B-C Model

A psychological framework that helps to understand the relationship between an Activating event, Beliefs, and the Consequences of those beliefs, emphasizing the role of cognition in emotional and behavioral responses.

Antecedents

Antecedents are events or conditions that occur before a behavior, which may trigger or cue the behavior to occur in contexts of behavior analysis.