After 4 Months How Much Interest Would I Have to Pay

question 205

Multiple Choice

After 4 months how much interest would I have to pay on a loan of $500 if the rate of interest was 22%?

• A) $11.25
• B) $27.50
• C) $36.67
• D) $110.00
• E) $39.74

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Definitions:

Shutdown Point

The level of output and price at which a firm's total revenue is equal to its total variable costs, below which the firm would lose more money by continuing to operate than by shutting down.

Break-Even Point

The level of production or the volume of sales at which total costs equal total revenue, resulting in no net loss or gain.

Lowest Price

The smallest amount for which a product or service is sold in the market.

Long Run

An interval where all inputs and expenses are adjustable, enabling total adaptation to shifts.