You Need Some Money Today and the Only Friend You

question 101

Multiple Choice

You need some money today and the only friend you have that has any is your 'miserly' friend. He agrees to loan you the money you need,if you make payments of $20 a month for the next six months. In keeping with his reputation,he requires that the first payment be paid today. He also charges you 1.5% interest per month. How much money are you borrowing?

• A) $113.94
• B) $115.65
• C) $119.34
• D) $119.63
• E) $119.96

---

Definitions:

Financial Institution

An organization that provides financial services such as banking, investments, insurance, and loans to businesses and consumers.

Bills Of Exchange

Written orders for the payment of a specified sum of money to a designated person, either on demand or at a set time.

Legislation

Laws that have been enacted by a legislature or other governing body.

Jurisdiction

The official power or authority of a legal body to make decisions and judgments in a specific geographic area or over certain types of legal cases.