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    Corporate Finance Study Set 5
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    Exam 5: The Time Value of Money
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    If a Borrower Promises to Pay You $1,900 9 Years
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If a Borrower Promises to Pay You $1,900 9 Years

Question 43

Question 43

Multiple Choice

If a borrower promises to pay you $1,900 9 years from now in return for a loan of $1,000 today,what effective annual interest rate is being offered?


A) 5.26%
B) 7.39%
C) 9.00%
D) 10.00%

Correct Answer:

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