If You Borrowed $8,700 at 6% for One Year, What

question 119

Multiple Choice

If you borrowed $8,700 at 6% for one year, what would your total interest be if you are charged simple interest?

• A) $600
• B) $9,222
• C) $522
• D) $700

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess earnings over the next best alternative.

Monopolistic Competition

A trading structure inhabited by many corporations pushing products that are analogous but not carbon copies, which affords them a degree of control over the market.

Differentiated Products

Goods that are fundamentally similar but are distinguished from each other by characteristics like quality, branding, and features.

Perfect Competition

A market structure characterized by many sellers and buyers, homogeneous products, and the absence of barriers to entry or exit.