Barbara Evanston, a Novelty Shop Owner, Can Save $500 by Purchasing

question 23

Short Answer

Barbara Evanston, a novelty shop owner, can save $500 by purchasing merchandise now instead of waiting for two months. However, she will have to borrow $3,200 for 60 days and will have to pay 8.5% exact simple interest. How much will Barbara have to pay in interest to borrow the money? (Use a 365-day year.)

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Definitions:

Underachiever

An individual, typically a student, who performs significantly below their potential or abilities in academic settings.

Highly Intelligent

A description for individuals who possess superior cognitive processing capabilities, often reflected in high IQ scores or exceptional problem-solving abilities.

Intellectual Disability

A term for significantly below-average cognitive ability present from birth or early childhood that impacts adaptive behaviors such as everyday social and practical skills.

Environmental Causes

Factors in an individual's surroundings that can influence their development, behavior, and health.