Martin Is Offered an Investment Where for $50 000 Today

question 1

Multiple Choice

Martin is offered an investment where for $50 000 today, he will receive $53 500 in one year. He decides to borrow $50 000 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)6.8%
• B)6.2%
• C)7.0%
• D)7.6%

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Definitions:

Major Organ Of Gas Exchange

Lungs in mammals, including humans, where oxygen is absorbed into the blood and carbon dioxide is released from the blood.

Germ Layer

One of the primary layers of cells (ectoderm, mesoderm, and endoderm) in the early embryo from which all tissues and organs develop.

Digestive Tube

A continuous hollow tube running through the body, from mouth to anus, where digestion and nutrient absorption occur.

Ectoderm

The outermost layer of cells or tissue of an embryo in early development, giving rise to the outer layer of skin, nerves, and brain.