Martin is offered an investment where for $6,000 today, he will receive $6,180 in one year. He decides to borrow $6,000 from the bank to make this investment. What is the maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on thisinvestment?

A. 2% B. 1% С. 4% D. 3%

The correct answer is D. 3 % p. a .

Step-by-step explanation:

For the investment offered, Martin is supposed to get $180 as an interest ($6,180 - $6,000).

Now Martin is borrowing $6,000 from the bank to make this investment. He should be charged $180, so that he breaks even on investment.

Thus using the formula:

Interest= Principal × Time ( per annum) × ; (Here simple and compound interest are same as the sum borrowed is to be charged for a single year)

⇒ 180 = × 1 × Interest rate

⇒ 180 = 60 × Interest rate

⇒ Interest rate = 3

Thus the correct answer is 3% per annum.

the slope of the line is 60

one point on the line is (40,10)

step-by-step explanation:

in the equation outside the parenthesis the equation always tells you the slope. in this case it is 60.

in the parenthesis is also says 40 which is x because it is near the x and 10 is y because it is near y.