If One Borrows $1,000 at 8 Percent Interest on a Discount

question 80

True/False

If one borrows $1,000 at 8 percent interest on a discount basis, the effective rate of interest is about 8.7 percent.

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Definitions:

Housekeeper

An individual responsible for maintaining cleanliness, order, and hygiene in a living or working environment.

Maintenance Staff

Individuals responsible for the upkeep, repair, and preservation of buildings, grounds, and equipment to ensure they are in safe, working condition.

Facsimile Machine

A piece of office equipment used to send a facsimile, or fax, over telephone lines from one modem to another; more commonly called a fax machine.

Electronic Impulses

Electrical signals that are transmitted for communication between various components of an electronic or biological system.