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:

Payoff

The return or result obtained from an investment or action, often used in the context of games, economics, and decision-making.

Nature-Nurture Controversy

The nature-nurture controversy is an ongoing debate concerning the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Prosocial Behaviour

Positive actions that benefit others, including kindness, sharing, and helping behaviors.

Biological

Pertaining to the science of life and living organisms, including their structure, function, growth, and origin.