THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 239

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The amount of time you have to wait at a particular stoplight is uniformly distributed between zero and two minutes.
-What is the probability that you have to wait between 15 and 45 seconds for the stoplight?

• A)0.15
• B)0.25
• C)0.35
• D)0.45

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Definitions:

Prepaid Interest

The amount of interest that is paid in advance of the period to which it relates, often associated with loans or mortgages.

Loan Payable

Loan Payable is the liability account in a company’s balance sheet representing the amount owed to lenders that must be paid back in the future.

Interest Income

Income earned from the lending of funds or through investment in interest-bearing financial instruments.

Accrued Interest Receivable

Interest that has been earned but not yet received in cash, representing an asset on the balance sheet.