What Is the Time Period of a Loan for $3,000

question 5

Multiple Choice

What is the time period of a loan for $3,000, at 10% ordinary interest, if the amount of interest is $145.00? (Round any fraction to the next higher day)

• A) 174 days
• B) 176 days
• C) 177 days
• D) 178 days

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Definitions:

Federal Reserve System

The central banking system of the United States, responsible for monetary policy, regulation of banks, and maintaining financial stability.

Federal Funds Rate

The interest rate at which depository institutions lend reserve balances to other depository institutions overnight, on an uncollateralized basis.

Required Reserves

The minimum amount of funds that banks must hold in reserve against deposits, as mandated by the central bank.

Clear

To settle or resolve a transaction, debt, or other financial activity, ensuring that all obligations have been fulfilled.