What Is the Amount of Interest Owed on a Loan

question 70

Multiple Choice

What is the amount of interest owed on a loan of $40,000 after a year at an interest rate of 4 percent?

• A)$1,600
• B)$41,600
• C)$40,400
• D)$160

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Definitions:

Life Chances

A term used by sociologist Max Weber to describe the opportunities individuals have to improve their quality of life through access to resources such as education, healthcare, and employment.

Caste Systems

A form of social stratification characterized by hereditary ranks, usually religiously dictated, and often associated with a particular occupation.

Equality

A principle regarding the equal treatment and impartiality towards all individuals, often in the context of rights, status, and opportunities.

Debt

An obligation of repayment owed by one party (the debtor) to a second party (the creditor); in most cases this refers to financial assets being owed.