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Suppose You Borrow $1,000 Today with the Promise to Pay

Question 7

Multiple Choice

Suppose you borrow $1,000 today with the promise to pay back $1,100 one year from today.Then the interest rate is __________,and the interest is __________.


A) 1 percent; $60
B) 10 percent; $1,100
C) 5 percent; $100
D) $100; 10 percent
E) 10 percent; $100

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