Multiple Choice
Suppose that interest payments are $140 per year on a $1,000 loan and $1,188 per year on an $8,485 loan. The interest rates on the two loans are
A) 14 percent and 20 percent, respectively.
B) 14 percent and 14 percent, respectively.
C) 18.8 percent on both loans.
D) 1.4 percent and 11.8 percent, respectively.
Correct Answer:
Verified
Correct Answer:
Verified
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