Suppose you borrow $500 for a year and the lender discounts $75 of interest at the time the loan is made (giving the borrower only $425). The interest rate on this loan is about:
A. 12.5 percent.
B. 14.5 percent.
C. 17.6 percent.
D. 10 percent.
Answer: C
Economics
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What will be an ideal response?
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