Find the Amount of Simple Interest on a Loan of $3,500

question 67

Multiple Choice

Find the amount of simple interest on a loan of $3,500 at $9 \frac { 1 } { 2 } \%$ interest for 14 years.

• A) $332.50
• B) $387.92
• C) $1,155.00
• D) $4,655.00

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Definitions:

Critical Value

A threshold in hypothesis testing that defines the boundary beyond which an observed test statistic is considered statistically significant.

Level of Significance

A threshold used in hypothesis testing that determines the probability of wrongly rejecting a true null hypothesis.

T-test

A statistical method employed to ascertain whether there's a notable difference in the average values of two distinct groups.

Null Hypothesis

A statement positing that there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.