A Security Firm Is Offered $80 000 in One Year

question 97

Multiple Choice

A security firm is offered $80 000 in one year for providing CCTV coverage of a property. The cost of providing this coverage to the security firm is $74 000, payable now. If the security firm planned to borrow the funds from a bank, what is the maximum interest rate a bank could charge them so they at least break even on this project?

• A)8.2155%
• B)8.1081%
• C)7.5000%
• D)8.1999%

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Definitions:

Biological Side

Aspects of an individual's physical health, genetic makeup, and physiological processes.

Id

A component of the personality in Freudian psychoanalysis that is driven by the pleasure principle.

Freud's Model

A theoretical framework for understanding human behavior and the mind, emphasizing unconscious processes, sexual and aggressive instincts, and early childhood experiences.

Unconsciously

Pertaining to the part of the mind that is inaccessible to the conscious mind but that affects thoughts and behaviors.