Suppose a person pays $80 of annual interest on a loan that has a 5 percent annual interest rate. The loan
10. Suppose a loan customer is considering two alternative $22,000 loans. Loan 1 requires payment of $1,100
of interest each year and Loan 2 has a 6 percent annual interest rate. Other things equal, the loan customer will:
A. be indifferent between the two loans because they both have the same annual percentage rate.
B. reject both loans because they each carry too high an interest rate.
C. choose Loan 1 because it has a lower annual interest rate than Loan 2.
D. choose Loan 2 because it has a lower annual interest rate than Loan 1.
eco - Ms. Sue, Thursday, May 26, 2011 at 4:56pm
0.05x = 80
x = 80/0.05
x = ?
10. Use the same procedure to find the answer for 10.
eco - qwe, Friday, January 13, 2012 at 5:37am
eco - mike, Tuesday, November 27, 2012 at 4:21pm
eco - Anonymous, Sunday, July 28, 2013 at 10:19pm
eco - Anonymous, Sunday, December 14, 2014 at 3:09pm
eco - Rachel Randall, Friday, July 31, 2015 at 9:45pm