You Obtain a Loan of $3,000 Based on Simple Interest

question 42

Short Answer

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12 percent,or 1 percent a month.If the first payment is $300,how much is the principal portion of the payment?
(a)$27
(b)$270
(c)$280
(d)$295

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Definitions:

Dominant Strategy

A strategy in game theory that is the best for a player, regardless of what strategies the other players choose.

Firm A

A placeholder name often used in economics and business scenarios to denote a specific, but unnamed, company.

Prisoners' Dilemma

A scenario in game theory where individuals acting in their own self-interest produce a worse outcome than if they had cooperated, illustrating challenges in achieving the best collective outcome.

Dominant Strategy

A strategy that is best for a player in a game, regardless of the strategies chosen by other players.