You Could Borrow $2,000 Today from Bank a and Repay

You could borrow $2,000 today from Bank A and repay the loan, with interest, by paying Bank A $2,170 one year from today. Or, you could borrow X dollars today from Bank B and repay the loan, with interest, by paying Bank B $2,712.50 one year from today. In order for the same interest rate to apply to the two loans, X =

A) $2,366.67.
B) $2,450.00.
C) $2,500.00.
D) $2,525.50.

Correct Answer:

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