What Annual Rate of Return Is Implied on a $5,000

question 51

Multiple Choice

What annual rate of return is implied on a $5,000 loan taken next year when $7,700 must be repaid in year 8?

• A) 6.36 percent
• B) 7.12 percent
• C) 8.54 percent
• D) 11.62 percent

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Definitions:

Bank Building

A structure specifically designed to house the functions and services of a banking institution.

Duty to Assist

The obligation to provide necessary information, support, or assistance in certain contexts, such as employment or insurance claims.

Diving Equipment

Apparatuses and tools specifically designed for subaquatic exploration and activities, such as scuba tanks and wetsuits.

Personal Safety

Measures and practices adopted to prevent or reduce the risk of harm to oneself from accidents, violence, or health hazards.