Compute the Simple Interest Earned on a 1-Year $200 Deposit

question 52

Multiple Choice

Compute the simple interest earned on a 1-year $200 deposit that earns 6% per year.

• A) $6
• B) $60
• C) $120
• D) $12
• E) $200

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Definitions:

Takeover Attempt

An effort by one company to acquire control over another company, often by purchasing a significant portion of its stock.

Golden Parachutes

Contractual agreements that provide senior executives with significant benefits in the event that they are terminated as a result of a merger or takeover.

Discount Rate

The interest rate used to discount future cash flows to their present values, reflecting the time value of money and risk.

Acquisition

The process by which one company takes over another and clearly establishes itself as the new owner.