Suppose that you are a borrower with a project that has a rate of return of 2.5%. Which of the following offers to borrow $1,000 would let you earn a positive gain, provided a lender accepts your offer?
(I) You offer to borrow at an interest rate of 0.2%.
(II) You offer to borrow at an interest rate of 1.3%.
(III) You offer to borrow at an interest rate of 2.4%.
(IV) You offer to borrow at an interest rate of 3.5%.
(V) You offer to borrow at an interest rate of 4.6%.
Explain