If You Borrow $100 from a Friend and You Pay

question 138

Multiple Choice

If you borrow $100 from a friend and you pay her back $110 at the end of the year,the interest rate is

• A)10 percent.
• B)$100.
• C)6 percent.
• D)$6.
• E)$10.

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Definitions:

Price of a Book

The amount of money charged for a book, determined by factors like publishing costs, author royalties, and market demands.

Budget Constraint

A restriction on the possible combinations of goods and services an individual can afford to buy given their income and the prices of the goods.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at various prices.

Income

Income refers to the financial earnings someone acquires regularly either from performing work or making investments.