Solve the Problem

question 31

Multiple Choice

Solve the problem. Assume that simple interest is being calculated in each case. Round your answer to the nearest cent.
-Allan borrowed $6500 from his father to buy a car. He repaid him after 4 months with interest of 2% per year. Find the total amount he repaid.

• A) $6630.00
• B) $6543.33
• C) $6532.50
• D) $43.33

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Definitions:

Cyclically Unemployed

Individuals who have lost their jobs due to downturns in the business cycle or economic recessions, as opposed to structural factors.

Price Index

An index number that shows how the weighted average price of a market basket of goods changes through time.

Market Basket

A selected set of goods and services used to track changes in prices and inflation over time.

Rate of Inflation

The percentage increase in the general price level of goods and services in an economy over a period of time, typically measured annually.