You Could Borrow $1,000 Today from Bank a and Repay

question 93

Multiple Choice

You could borrow $1,000 today from Bank A and repay the loan,with interest,by paying Bank A $1,060 one year from today.Or,you could borrow $1,500 today from Bank B and repay the loan,with interest,by paying Bank B $1,600 one year from today.Which of the following statements is correct?

• A)The interest rate on the loan from Bank A is higher than the interest rate on the loan from Bank B.
• B)The interest rate on the loan from Bank A is lower than the interest rate on the loan from Bank B.
• C)The interest rates on the two loans are the same.
• D)There is not enough information to determine which loan has the higher interest rate.

---

Definitions:

New Terms

Freshly introduced or revised conditions or stipulations in a contract or agreement.

Standard Order Form

A predefined template used by businesses to facilitate the easy and consistent placing of orders by customers.

Materially Alter

To make significant changes to a document or object that could affect its value, function, or meaning.

Acceptance Of Terms

The agreement to abide by the conditions of an offer or contract.