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You Can Borrow $5,000 to Finance a New Business Venture

Question 46

Multiple Choice

You can borrow $5,000 to finance a new business venture. This new venture will generate annual earnings of $251. The maximum interest rate that you would pay on the borrowed funds and still increase your income is


A) 25%.
B) 12.5%.
C) 10%.
D) 5%.

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