Martin Is Offered an Investment Where for $5000 Today,he Will

question 64

Multiple Choice

Martin is offered an investment where for $5000 today,he will receive $5250 in one year.He decides to borrow $5000 from the bank to make this investment.What is the maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment?

• A)3.2%
• B)4.8%
• C)5.0%
• D)5.6%

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Definitions:

Dissociative Fugue

A rare psychiatric disorder characterized by temporary amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

New Identity

The concept of adopting or developing a different persona or self-perception, often in response to life changes or personal growth.

Schizoid Personality Disorder

A mental disorder characterized by a lack of interest in social relationships, a tendency towards a solitary or sheltered lifestyle, and emotional coldness.

Avoidant Personality Disorder

A mental condition characterized by a long-standing pattern of extreme shyness, feelings of inadequacy, and sensitivity to rejection.