A Loan of P Is Taken Out at a Simple

question 50

Multiple Choice

A loan of P is taken out at a simple interest rate of r = 10.4%.Two months later,a partial loan payment of $500 is made.Of this payment,$301.34 went towards paying interest on the loan while $198.66 went to reducing the outstanding balance of the loan.What is the value of P? (Answer to nearest dollar)

• A)$2898
• B)$3096
• C)$11,461
• D)$17,385

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Definitions:

Coupons

Discount vouchers or codes that consumers can use to save money on purchases.

Collaborative Consumption

An economic model based on sharing, swapping, trading, or renting products and services, enabling access over ownership.

Mass Customization

A manufacturing and marketing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

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Online platforms or groups where individuals with common interests gather to communicate, share, and engage.