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Suppose That Interest Payments Are $140 Per Year on a $1,000

Question 58

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 on both loans.
C) 18.8 percent on both loans.
D) 1.4 percent and 11.8 percent, respectively.

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