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:

Defensive Self-Esteem

A form of self-esteem that is fragile and highly sensitive to criticism or perceived threats.

Self-Serving Bias

The common tendency to attribute one's successes to personal characteristics and one's failures to external factors.

Angry When Criticized

A behavioral response where individuals display anger or irritation in response to criticism, reflecting a possible sensitivity to negative feedback.

Ambiguous and Confusing

Descriptions or situations that are unclear, open to more than one interpretation, and cause confusion.