If You Receive $100 000 Back as Principal and Interest

question 30

Multiple Choice

If you receive $100 000 back as principal and interest for an investment of $92 368 that you made six months earlier,what simple rate of interest has been earned on your investment?

• A) 7.63% per annum
• B) 15.48% per annum
• C) 16.16% per annum
• D)16.75% per annum

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Definitions:

Pure Rate

This term might refer to the basic interest rate or insurance premium rate without including any modifications, but clarification is needed as "pure rate" can have context-dependent meanings.

Theoretical Rate

An ideal or estimated rate used in calculations or theories, often not observed in real-life scenarios.

Loan Amount

The sum of money borrowed from a lender that is expected to be paid back with interest.

Annual Interest

The amount of money that is paid in interest on an investment, loan, or savings account over the course of a year.