Asked by Dalton Regier on Jun 22, 2024
Verified
You agree to lend a friend $20,000 for a year at an annual interest rate of 45%. At the end of the year your friend must pay you ________ in interest.
A) $133
B) $750
C) $1,900
D) $9,000
Annual Interest Rate
The percentage increase in money owed per year, including the effect of compounding.
- Grasp the basic idea behind interest rates and the mechanisms used to calculate them.
Verified Answer
RG
Riddhi GohelJun 28, 2024
Final Answer :
D
Explanation :
The interest can be calculated as $20,000 * 45% = $9,000.
Learning Objectives
- Grasp the basic idea behind interest rates and the mechanisms used to calculate them.