(Last Word) Suppose You Borrow $500 for a Year and the Lender

question 57

Multiple Choice

(Last Word) Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425) . The interest rate on this loan is about

• A) 12.5 percent.
• B) 14.5 percent.
• C) 17.6 percent.
• D) 10 percent.

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Definitions:

Critical Path

The longest duration path through a project, determining the shortest time possible to complete the project, where any delay could extend the overall project duration.

Variance

A statistical measure that represents the dispersion or spread of a set of data points.

Probability

A measure of the likelihood of a certain event or outcome, expressed as a number between 0 and 1.

PERT Network

A project management tool used to schedule, organize, and coordinate tasks within a project.