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

question 53

Multiple Choice

After taking out a one-year loan with an annual interest rate of 5 percent, Pranav pays $2,100 back to the bank. The principal of the loan was _______ and the interest payment was _______.

• A) $2,000; $100
• B) $2,100; $100
• C) $100; $2,100
• D) $100; $2,000

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Definitions:

Memory Errors

Mistakes or inaccuracies that occur in the process of encoding, storing, and recalling information, often leading to false memories or forgetting.

Confidence Level

A statistical measure that expresses the degree of certainty or trust in a sampling method or experimental result.

Recollection

The action of remembering something not immediately present to the senses, often through conscious effort.

Memories Accuracy

The extent to which recalled information matches the original encoded event, important for the integrity of human memory.