What Simple Interest Rate Was Used If Rocco Charged Squirrel

question 74

Multiple Choice

What simple interest rate was used if Rocco charged Squirrel $350 interest on a loan of $2,000 for 41 days?

• A) 70%
• B) 156%
• C) 14.35%
• D) 15.58%
• E) 175%

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Definitions:

Government Purchases

Expenditures by government entities on goods and services that are part of government consumption or investment.

Producer Surplus

The difference between the amount producers receive from selling a good or service and the minimum amount they would accept for that good or service.

Price Floor

A price floor is a government- or authority-set minimum price below which a particular good or service cannot legally be sold, aiming to prevent prices from falling too low.

Widgets

A generic term commonly used to refer to an unspecified, fictional product used in examples and economic theory.