Compensating differentials . higher wages that compensate workers for unpleasant aspects of a job. b. nonminus−monetary benefits from being employed such as health care. c. higher wages that compensate the more experienced workers in a field. d. wages paid to workers where the supply of labor is great relative to dema.

You are looking at a one-year loan of $16,500. the interest rate is quoted as 8.7 percent plus two points. a point on a loan is 1 percent (one percentage point) of the loan amount. quotes similar to this one are common with home mortgages. the interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 8.7 percent interest. what rate would you actually be paying here?