Find the interest rates earned

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1. Find the interest rates earned on each of the following. Round each answer to two decimal places.

A. You borrow $650 and promise to pay back $676 at the end of 1 year.

B. You lend $650 and the borrower promises to pay you $676 at the end of 1 year.

C. You borrow $83,000 and promise to pay back $311,986 at the end of 8 years.

D. You borrow $16,000 and promise to make payments of $5,001.00 at the end of each year for 5 years.

2. What is the expected return for this stock?

Economy Probability Return

Boom 0.20 32.09%

Normal 0.30 30.82%

Recession 0.50 -6.5%

Reference no: EM131984172

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