If the interest rate is 5 percent per year and you borrow $100 for two years, at the end of the second year you must pay back
A. $103.00.
B. $93.73.
C. $110.25.
D. $106.99.
Answer: C
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What is the real-balance effect of an increase in the price level?
What will be an ideal response?
A tax is said to be progressive if
a. the absolute size of the tax (in dollars) increases as income increases b. the wealthy pay a smaller percentage of their income than the poor c. the average tax rate falls as income rises d. the proportion of income paid as taxes increases as income increases e. the proceeds are used to pay for liberal political programs
When the price of a good is above its equilibrium price, a:
a. surplus puts upward pressure on the price. b. surplus puts downward pressure on the price. c. shortage puts upward pressure on the price. d. shortage puts downward pressure on the price.
Corporations obtain funds when their previously issued stock is traded.
Answer the following statement true (T) or false (F)