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Suppose Tom Receives a One-Year Loan from ABC Bank for $5,000.00

Question 110

Multiple Choice

Suppose Tom receives a one-year loan from ABC Bank for $5,000.00. At the end of the year, Tom repays $5,400.00 to ABC Bank. Assuming the simple calculation of interest, the interest rate on Tom's loan was:


A) $400
B) 8.00%
C) 7.41%
D) 20%

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