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Assume That You Borrow $2000 at 10 Percent Annual Interest

Question 3

Multiple Choice

Assume that you borrow $2000 at 10 percent annual interest to finance a new business project. For this loan to be profitable, the minimum amount this project must generate in annual earnings is ________.


A) $400
B) $201
C) $200
D) $199

Correct Answer:

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