A $2000 Loan Is Paid Off with a Payment of $800

question 68

Multiple Choice

A $2000 loan is paid off with a payment of $800 in 50 days and a final payment of $1240 in 90 days (after date of loan) .Assuming the Merchant's rule,what simple interest rate,r,was used?

• A)r ≥ 10.20%
• B)9.40% < r ≤ 10.20%
• C)8.60% < r ≤ 9.40%
• D)r < 8.60%

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Definitions:

Accept Assignment

In healthcare, agreeing to accept the insurance company's payment as full payment for services rendered.

Health Maintenance Organizations

A type of health insurance plan that typically requires members to receive care from a network of specified healthcare providers and facilities to be covered.

Capitated Rate

A payment arrangement for healthcare service providers where they receive a set amount for each enrolled person assigned to them, regardless of the amount of services provided.

Copayments

A fixed amount paid by a patient for a covered healthcare service, usually when receiving the service, with the rest covered by their insurance.