Interest Rate: Ray Has $5,000 to Invest in a Small

question 83

Multiple Choice

Interest rate: Ray has $5,000 to invest in a small business venture. His partner has promised to pay him back $8,200 in five years. What is the return earned on this investment?

• A) 9.3%
• B) 8.7%
• C) 11.1%
• D) 10.4%

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Definitions:

Different Agreement

Refers to an alternate or varied contractual arrangement distinct from an original or previous one.

Managing Partner

An owner of a partnership who has the authority and responsibility to manage the day-to-day operations of the business.

Partnership Business

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Full Information

A state in which all relevant data and facts are disclosed, allowing for well-informed decision making.