A Loan Was Taken Out on January 1,2010 at a Simple

question 30

Multiple Choice

A loan was taken out on January 1,2010 at a simple interest rate of 8.5%.Interest is to be calculated using ordinary interest (Banker's rule) .The amount repaid on December 29,2010 is $13,027.02.What was the original amount of the loan?

• A)$12,014.21
• B)$12,011.63
• C)$12,001.25
• D)$11,998.64

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Definitions:

New York Fed

A key component of the Federal Reserve System, responsible for regulating and implementing monetary policy in the Federal Reserve District of New York.

FOMC

The Federal Open Market Committee, which is responsible for setting monetary policy in the United States, including interest rates and money supply targets.

Federal Reserve Board Governors

Members of the board that oversees the Federal Reserve System, responsible for setting monetary policy, including interest rates, in the United States.

Federal Reserve Board Of Governors

The governing body of the Federal Reserve System, responsible for overseeing the Federal Reserve banks and setting monetary policy.