The Total Amount of Simple Interest Calculated Annually on a $4,000

question 95

Multiple Choice

The total amount of simple interest calculated annually on a $4,000 note payable in 5 years at 9% is:

• A) $1,800.00
• B) $1,411.20
• C) $2,154.60
• D) $554.04

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Definitions:

Crystal Ball

In forecasting and predictive analysis, a tool or method that allows for the estimation of future conditions or occurrences.

Tornado Charts

A graphical method used in sensitivity analysis to show the effect of varying different parameters on a particular outcome.

Monte Carlo Simulation

A computational algorithm that relies on repeated random sampling to obtain numerical results, often used in physical and mathematical problem-solving.

Correlation Coefficients

Statistical measures that quantify the strength and direction of the linear relationship between two variables, ranging from -1 (perfect negative correlation) to 1 (perfect positive correlation).