For Simple Interest Accounts, the Amount a Accumulated or Due

question 41

Multiple Choice

For simple interest accounts, the amount A accumulated or due depends on the principal p, interest rate r, and the time t in years according to the formula A = p(1 + rt) . Mary borrowed $7700 at 17.5% simple interest. If she repaid $18,749.50, what was the term of the loan?

• A) 8.0 years
• B) 8.2 years
• C) 8.4 years
• D) 8.6 years

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Definitions:

Denial

A defense mechanism where a person refuses to accept reality or facts, effectively blocking external events from awareness.

Refusal To Believe

The act of deliberately choosing not to accept or acknowledge information or facts, often despite evidence to the contrary, which can stem from various cognitive or emotional reasons.

Defense Mechanism

A psychological strategy unconsciously used to protect a person from anxiety arising from unacceptable thoughts or feelings.

Displacement

A psychological defense mechanism where emotions are transferred from one object or person to another less threatening object or person.