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Punjab Company Borrowed $114,000 from Its Bank

Question 50

Multiple Choice

Punjab Company borrowed $114,000 from its bank. Punjab will repay $140,000 in 7 years. What is the approximate interest rate that Punjab will incur on this loan, assuming annual compounding? Use a financial calculator or a spreadsheet to derive your answer. (Do not round any intermediary calculations, and round your final answer two decimal places, X.XX%.)


A) 2.16%
B) 2.98%
C) 81.43%
D) 3.79%

Correct Answer:

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