The appropriate discount rate for the following cash flows is 7.48 percent per year.

Year Cash Flow

1 $2,500

2 $0

3 $3940

4 $2190

What is the present value of the cash flows?

The interest rate that is most commonly quoted by a lender is referred to as which one of the following?

A. Annual percentage rate.

B. Compound rate.

C. Effective annual rate.

D. Simple rate.

E. Common rate.