If Mega Corp

question 48

Multiple Choice

If Mega Corp.borrows $9,000 in 2010 and agrees to pay the lender $10,000 in 2011, the interest rate on the loan is approximately:

• A) 9.0 percent.
• B) 10.0 percent.
• C) 11.1 percent.
• D) Not enough information to determine.

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Definitions:

Points

In finance, points refer to a unit of measurement used to describe the percentage change in financial instruments, or fees paid upfront on a loan expressed as a percentage of the loan amount.

Normative Views

Opinions or judgments based on what is considered right or desirable, often contrasted with empirical or factual statements.

Positive Theory

A theory that aims to explain how things are, focusing on factual and objective analysis rather than on what should be.

Tax Policy

Refers to the government's approach to taxation, including the determination of tax rates, exemptions, and regulations affecting the tax liability of individuals and businesses.