If You Borrow $20 000 as a Five-Year Loan from the Bank

question 23

Multiple Choice

If you borrow $20 000 as a five-year loan from the bank and the bank requires you to make end-of-year payments of $4878.05, what is the annual interest rate on this loan?

• A)8 percent
• B)6 percent
• C)7 percent
• D)9 percent

---

Definitions:

Foreign Assignments

Work tasks or roles assigned to employees outside their home country, often for an extended period.

Direct Foreign Investment

This refers to the investment by a company or individual in one country in business interests located in another country, often by buying a company in the target country or by expanding operations of an existing business in that country.

Internationalization process

The strategy through which a business expands its operations and presence into international markets.

Operations VP

A high-level executive who oversees the day-to-day operations and ensures they align with organizational goals.