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

question 19

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%
• E)2.5%

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Definitions:

Sons of Liberty

A group of American patriots in the colonial period who organized against British taxation and policies, playing a significant role in the American Revolution.

British Court

The system of courts and legal institutions in the United Kingdom, or the royal court associated with the British monarchy.

John Wilkes

An 18th-century British politician and journalist known for his radical views, defense of liberty, and challenges to the government's authority.

King George III

The King of Great Britain and Ireland during the late 18th century, best known for his leadership during the American Revolutionary War.