Solve for Y. -Sophia Borrowed $13,671 at 6% Simple Interest for 3 Months

question 122

Multiple Choice

Solve for y.
-Sophia borrowed $13,671 at 6% simple interest for 3 months. How much will the interest amount to? What is the total amount that she will have to pay back at the end of 3 months? Round answers to the nearest cent if
Necessary.

• A) $136.71; $13,807.71
• B) $206.79; $13,877.79
• C) $205.07; $13,876.07
• D) $273.42; $13,944.42

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Definitions:

Junk Bonds

High-yield, high-risk securities issued by companies or municipalities with lower credit ratings, offering investors potentially higher returns in exchange for the increased risk.

Risky Companies

Businesses that operate in highly volatile sectors or have financial uncertainties making their investments considered higher risk.

Higher Rated Firms

Companies that have been given a superior evaluation or credit rating by rating agencies, indicating financial health and stability.

Tender Offer

A public and open offer, often by a company, to purchase a significant portion of its own shares or those of another company at a specified price, which is usually at a premium to the market price.