Your College Has Agreed to Give You a $10,000 Tuition

question 34

Multiple Choice

Your college has agreed to give you a $10,000 tuition loan. As part of the agreement, you must repay $12,600 at the end of the three-year period. What interest rate is the college charging?

• A) 8%
• B) 9%
• C) 11%
• D) 6%

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Definitions:

Supply Curves

Graphical representations showing the relationship between the price of a good and the quantity of that good that producers are willing to supply.

Price

The financial contribution expected, compelled, or made in payment for something.

Tariff

A tax imposed by a government on goods and services imported from other countries, used to control trade volumes.

Decrease in Supply

This occurs when there is a reduction in the quantity of a good or service that producers are willing and able to supply at all possible prices.