Bill Borrowed $3,600 and Will Be Charged a Simple Interest

question 67

Multiple Choice

Bill borrowed $3,600 and will be charged a simple interest rate of 18%. Bill will pay ________ interest for borrowing the money on April 1 and repaying the money on December 31.

• A) $468
• B) $648
• C) $486
• D) $162

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Definitions:

International Gold Standard

A monetary system in which the standard economic unit of account is based on a fixed quantity of gold, allowing for stable exchange rates among countries.

Gold Flow

The movement of gold between countries, often used as a form of international payment or to stabilize currencies under the gold standard.

Price and Incomes

Policies or measures aimed at controlling the growth of prices and incomes to curb inflation without affecting employment.

Equilibrium Exchange Rate

The exchange rate at which the demand for a currency exactly matches its supply, leading to market balance.