Calculate the Simple Interest Rate at Which One Can Earn

question 110

Multiple Choice

Calculate the simple interest rate at which one can earn $1,500 per day interest on an investment of $7,500,000.

• A) 2.00%
• B) 9.67%
• C) 5.00%
• D) 6.67%
• E) 7.30%

---

Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or production volume.

Fixed Expenses

Costs that do not change in total over a wide range of activity levels or over a short period, such as rent or salaries.

Net Income

The total earnings of a company, subtracting total expenses from total revenue.