After Taking Out a One-Year Loan with an Annual Interest

question 125

Multiple Choice

After taking out a one-year loan with an annual interest rate of 10 percent, Toben pays $3,300 back to the bank. The principal of the loan was _______ and the interest payment was _______.

• A) $3,000; $300
• B) $3,300; $300
• C) $300; $3,300
• D) $300; $3,000

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Definitions:

Total Variable Cost

The sum of all variable costs that change in proportion with the level of output or activity.

Total Annual Fixed Costs

The sum of all consistent, non-variable expenses that a company incurs over the course of a year.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers, typically sloping downward from left to right.

Sales Price

The amount of money for which a product or service is sold to the customer.