Anne Morgan Wants to Borrow $6,000 for a Period of Four

question 35

Multiple Choice

Anne Morgan wants to borrow $6,000 for a period of four years. She has two choices. Her bank will lend her the amount at 7.25 percent compounded annually. She can also borrow from her firm and will have to repay a total of $8,130.93 at the end of four years. Should Anne choose her bank or the firm, and what is the interest rate if she borrows from her firm? (Round to the nearest percent.)

• A) She should borrow from the bank as the bank is charging a higher interest of 9%.
• B) She should borrow from her firm as it is charging a lower interest of 7%.
• C) She should borrow from the bank as the bank is charging a higher interest of 8%.
• D) She should borrow from her firm as it is charging a lower interest of 6%.

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Definitions:

Autonomic Nervous System

is a control system that operates unconsciously and regulates bodily functions such as the heart rate, digestion, respiratory rate, pupillary response, urination, and sexual arousal.

Somatic System

Part of the peripheral nervous system that handles voluntary control of body movements through the control of skeletal muscles.

Autonomic System

A part of the peripheral nervous system that controls involuntary bodily functions such as heartbeat, digestion, and breathing.

CNS

Central Nervous System, the part of the nervous system consisting of the brain and spinal cord, which integrates and coordinates bodily functions.