The Amount of Interest Owed on a Loan of $2,000

question 39

Multiple Choice

The amount of interest owed on a loan of $2,000 after a year at an interest rate of 10 percent is:

• A) $2,100.
• B) $2,200.
• C) $200.
• D) $100.

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Definitions:

Production

The process of creating goods and services through the combination of labor, capital, and resources.

Division of Labor

The allocation of different tasks to different people or groups in an effort to improve efficiency.

Exchange Rate

The value of one currency for the purpose of conversion to another, determining how much of one currency can be exchanged for another currency.

Honduras

A country located in Central America, characterized by its rich culture, historical sites, and a diverse landscape that includes mountains, rainforests, and coastal beaches.