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:

Defense of Marriage Act

A U.S. federal law enacted in 1996, defining marriage for federal purposes as the union of one man and one woman, and allowing states to refuse to recognize same-sex marriages granted under the laws of other states. It was partially struck down by the Supreme Court in 2013.

Congressional Republicans

Members of the Republican Party in the United States Congress, which consists of the Senate and the House of Representatives.

Gay Marriage

The legal or socially recognized marriage between two individuals of the same sex, also known as same-sex marriage.

Subprime Mortgages

These are home loans granted to borrowers with lower credit ratings, implying higher risk for the lender and typically coming with higher interest rates.