Solve the Problem

question 67

Multiple Choice

Solve the problem. Round to the nearest cent as needed.
-A bank has $750,000 to lend for 7 months. It can lend it to a local contractor at a simple interest rate of 12%, or it can lend it to a small business that will pay 12% compounded monthly. If the bank wants to maximize its
Interest earned, who should receive the loan (contractor or business) and what is the additional interest earned?

• A) Contractor; $52,500
• B) Business; $1601.51
• C) Contractor; $1601.51
• D) Business; $54,101.51

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Definitions:

Culmination Stage

The final phase of a process or project where everything comes together, and results or outcomes are realized.

Portfolio Frameworks

Systems or models used to organize, categorize, and prioritize different projects, investments, or products.

Ethical Decision Maker

An individual who consistently makes choices that reflect ethical standards and considerations.

Civic Professional

An individual whose professional activities are deeply intertwined with the advancement of community welfare and civic responsibilities.