Find Principal to the Nearest Dollar, Rate to the Nearest

question 45

Multiple Choice

Find principal to the nearest dollar, rate to the nearest tenth of a percent, or time to the nearest day. Use banker's interest.
-ABF Freight Systems earned $420.00 interest in 210 days from an investment that paid 4%. Find the amount initially invested.

• A)$182,500
• B)$10,500
• C)$9,000
• D)$18,000

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Definitions:

New Reserves

Resources or assets that have been newly discovered or identified, often referring to natural resources like oil, gas, or minerals that can be economically extracted.

Reserve Requirement Ratio

The fraction of deposits that banks must hold in reserve and not lend out, as mandated by the central bank.

Checkable Deposits

Bank account balances that can be withdrawn on demand using checks or electronic payment methods without any advance notice.

Excess Reserves

The amount of reserves that a bank holds in excess of the reserve requirements set by a central bank.