A financial institution is willing to lend you $2,000. However, you must repay $2,008 at the end of week one. What is the interest rate per week?

Economics Today and Tomorrow, Student Edition
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ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter6: Saving And Investing
Section6.1: Why Save?
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A financial institution is willing to lend you $2,000. However, you must repay $2,008 at
the end of week one. What is the interest rate per week?
Transcribed Image Text:A financial institution is willing to lend you $2,000. However, you must repay $2,008 at the end of week one. What is the interest rate per week?
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An investment is a possession or thing bought with the intention of making money or appreciating in value. An interest rate is, to put it simply, the portion of the principal that the lender charges when it uses its funds. The amount of the loan is known as the principle. The price of loans varies with interest rates. They can therefore influence how quickly or slowly the economy grows.

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