Solving for Rates What Annual Rate of Return Is Implied

question 102

Multiple Choice

Solving for Rates What annual rate of return is implied on a $700 loan taken next year when $800 must be repaid in year 3?

• A)4.55 percent
• B)4.76 percent
• C)6.90 percent
• D)7.14 percent

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Definitions:

Otitis Externa

An inflammation or infection of the outer ear canal, often referred to as "swimmer's ear."

Perception

The process of organizing and interpreting sensory information so that it makes sense.

Sensory Information

Data that is perceived by the sensory organs, such as eyes, ears, skin, and then processed by the brain to make sense of the environment.

Consciousness

The state of being aware of and able to think about oneself, one’s surroundings, and one’s thoughts and feelings.