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Suppose a Number of Your Friends Have Organized a Company

Question 2

Multiple Choice

Suppose a number of your friends have organized a company to develop and sell a new software product. They have asked you to loan them $7,000 to help get the company started, and have promised to repay your $7,000 plus 10% interest in one year. Of the following, which amount may be described as the return on your investment?


A) $7,000.
B) $ 700.
C) $7,700.
D) None of these is the correct amount.

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