The Total Amount of Simple Interest Calculated Annually on a $6,000

question 183

Multiple Choice

The total amount of simple interest calculated annually on a $6,000 note payable for 3 years at 11% is

• A) $1,980
• B) $2,205
• C) $6,600
• D) $7,980

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Definitions:

Substitute Goods

Products or services that can replace or be used in place of one another, having the ability to satisfy similar consumer needs or desires.

Iced Tea

A chilled beverage made by cooling brewed tea and typically served with ice, sometimes sweetened or flavored.

Complementary Goods

Products or services that are typically consumed together, such that demand for one increases demand for the other.

Coffee

A brewed drink prepared from roasted coffee beans, which are the seeds of berries from the Coffea plant, and is one of the most popular beverages globally.