Multiple Choice

In a simplified economic model, a single lender provides capital to five distinct borrowers. The lender's total income is derived by taking a share, s, from each of the five borrowers' businesses. Each borrower's income is the portion of their business's income that remains after the lender's share is paid. If the lender's share s is set to 0.25, what is the income difference between the lender and any one of the five borrowers? (Assume each business generates a total net income of 1 unit).

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Updated 2025-08-02

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