Find the Simple Interest on a $20,600 Investment Made for 6

question 66

Multiple Choice

Find the simple interest on a $20,600 investment made for 6 months at an interest rate of 8% per year. What is the future value Round your answer to the nearest ten.

• A)The simple interest is $800, the future value is $21,440.
• B) The simple interest is $800, the future value is $21,450.
• C) The simple interest is $840, the future value is $21,440.
• D) The simple interest is $820, the future value is $21,420.
• E) The simple interest is $840, the future value is $21,410.

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Definitions:

Collection Float

The time span between when a check is deposited and when the funds are actually available in the account, reflecting processing time.

Checks

Checks are written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated party.

Bank

A financial institution licensed to receive deposits and make loans.

Lockbox System

A service provided by banks to process payments quickly by having those payments mailed directly to a location accessible by the bank.