The Amount of Interest Owed on a Loan of $75,000

question 97

Multiple Choice

The amount of interest owed on a loan of $75,000 after a year at an interest rate of 1 percent is:

• A) $7,500.
• B) $75,750.
• C) $82,500.
• D) None of these is true.

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Definitions:

Standard Normal Curve

A symmetrical bell-shaped curve representing the distribution of a variable that has been standardized; it has a mean of 0 and a standard deviation of 1.

Area

A measure of the extent of a two-dimensional figure or shape in a plane, often measured in square units.

Z-score

A numerical indicator that shows how a specific value compares to the average of a set of values by measuring the number of standard deviations it is from the mean.

Position

The rank or specific role an individual occupies or holds within a structure or organization.