If You Borrow $2,000 from a Bank for One Year

question 84

Multiple Choice

If you borrow $2,000 from a bank for one year at a stated annual interest rate of 14 percent,but interest is prepaid (a discounted loan) ,then what is your effective annual rate?

• A) 14.00%
• B) 8.57%
• C) 16.28%
• D) 21.21%
• E) 28.00%

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Definitions:

Storage Granules

Intracellular particles, often found in bacteria and cells, that store nutrients like phosphorus or carbohydrates.

Fimbriae

Short, hair-like structures on the surface of some bacteria that help in attachment to host tissues and in the transfer of genetic material.

Electron Microscope

A microscope capable of producing high-resolution, highly magnified images through the use of an electron beam (rather than light). Transmission electron microscopes (TEMs) produce images of thin sections; scanning electron microscopes (SEMs) produce images of surfaces.

Actinomycetes

A group of Gram-positive bacteria known for their soil-dwelling habits and significant role in the decomposition of organic materials.