A Bank Offers a Loan That Will Requires You to Pay

question 7

Multiple Choice

A bank offers a loan that will requires you to pay 7% interest compounded monthly. Which of the following is closest to the EAR charged by the bank?

• A) 5.78%
• B) 8.68%
• C) 7.23%
• D) 14.46%

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Definitions:

Resistant

Describes an opposition or inability to accept or go along with something; in a physical context, it relates to a material's ability to resist or withstand an applied force.

Persistent Emotion

A long-lasting emotional state that might influence someone's behavior and perception over an extended period.

Temperament

The innate traits that influence how one reacts to the environment, including mood, activity level, and emotional reactivity.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behavior, thoughts, and emotions.