Martin Is Offered an Investment Where for $6000 Today, He

question 81

Multiple Choice

Martin is offered an investment where for $6000 today, he will receive $6180 in one year. He decides to borrow $6000 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) 1%
• B) 2%
• C) 3%
• D) 4%

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Definitions:

FADH₂

A reduced form of flavin adenine dinucleotide, a redox-active coenzyme involved in cellular respiration.

Aerobic Respiration

A metabolic process that uses oxygen to convert glucose or other organic substrates into energy, carbon dioxide, and water.

Electron Transport Chain

A series of protein complexes located in the inner mitochondrial membrane that facilitate electron transfer and ATP production.

Glycolysis

The metabolic pathway that breaks down glucose into pyruvate, producing energy in the form of ATP and NADH, operating in the cytosol of cells.