You Have Two Options Available in Repaying a Loan

question 5

Multiple Choice

You have two options available in repaying a loan.You can pay $200 at the end of 5 months and $300 at the end of 10 months or you can pay $X at the end of 3 months and $2X at the end of 6 months.What is X if the simple interest rate is 6% and the focal date is at the end of 5 months.

• A)$169.16
• B)$168.05
• C)$164.22
• D)$163.14

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Definitions:

Internal

Relating to or situated on the inside; intrinsic or inner attributes.

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires. It is used for assessing attitudes by asking respondents to rate their level of agreement with a statement using a choice scale.

Attitudes

A settled way of thinking or feeling about something, typically reflected in a person's behavior.

Sympathetic Arousal

A component of the autonomic nervous system's response preparing the body for fight-or-flight reactions to perceived threats, characterized by increased heart rate, blood pressure, and energy mobilization.