How Much Interest Will Be Earned on $8,000 Over a Period

question 37

Multiple Choice

How much interest will be earned on $8,000 over a period of four months if the interest rate is 6.5%?

• A) $7,830.34
• B) $173.33
• C) $169.66
• D) $130.00
• E) $26.00

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Definitions:

Scarce Resources

Natural, human, and artificial resources that are limited in supply and cannot satisfy all human wants and needs.

Secondary Effects

The unintended consequences of economic actions, which can occur as indirect results of a policy or event.

Economic Actions

Decisions or behaviors taken by individuals, firms, or governments that affect the production, distribution, and consumption of goods and services.

Positive Economic Statement

An objective statement about the economy that can be tested and validated through observation.