A Loan of P Is Taken Out at a Simple

question 105

Multiple Choice

A loan of P is taken out at a simple interest rate of r = 10.4%.Two months later a loan payment of $500 is made.Of this payment,$198.66 went to actually paying off the loan while $301.34 went towards interest on 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:

Denial of Discharge

In bankruptcy proceedings, the refusal to eliminate a debtor's obligation to pay back a debt, usually due to fraudulent activities associated with the bankruptcy filing.

Debtor's Debts

Obligations or amounts of money owed by a debtor to creditors.

Credit-counseling Course

A program designed to educate individuals on managing their personal finances and debts, often required before filing for bankruptcy.

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The process by which blood changes from a liquid to a gel, forming a clot, which is crucial for preventing excessive bleeding when injuries occur.