If a Country Has a $100 Million Debt and the Interest

question 100

Multiple Choice

If a country has a $100 million debt and the interest rate on the debt is 5% and the debt is serviced each year, this would result in:

• A) an interest payment of $5 million and a reduction in the debt amount by $10 million each year.
• B) an interest payment of $15 million and a reduction in the debt amount by $10 million each year.
• C) an interest payment of $5 million and no change in the debt amount.
• D) an interest payment of $1 million and an increase in the debt amount by $10 million each year.

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Definitions:

Functionalist

A perspective in sociology and psychology that assesses social structures and behaviors in terms of their roles, operations, and contributions to societal equilibrium.

American

A term referring to something or someone originating from or associated with the United States of America.

Doctorate Degree

The highest level of academic degree awarded by universities, typically after a course of study and research that contributes new knowledge to the field.

Psychology

The scientific study of the human mind and its functions, particularly those affecting behavior in a given context.