After Taking Out a One Year Loan with an Annual

question 109

Multiple Choice

After taking out a one year loan with an annual interest rate of 5 percent, Tommy pays $2,100 back to the bank. The principal of the loan must be ___________ and the interest payment must be ___________.

• A) $2,000; $100
• B) $2,100; $100
• C) $100; $2,100
• D) $100; $2,000

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Definitions:

Loudness

A subjective perception of the intensity of a sound, influenced by its amplitude and frequency, and how it is received and interpreted by the ear and brain.

Frequency

How often something happens within a certain period or within a specific sample.

Moon Illusion

A perceptual phenomenon where the moon appears larger when it is closer to the horizon than when it is higher in the sky.

Perceived Distance

The subjective experience or estimation of how far away an object is from the observer.