On March 17, Luke Borrowed $4,500 from His Revolving Line

question 18

Multiple Choice

On March 17, Luke borrowed $4,500 from his revolving line of credit. The current annual interest rate at the time was 5.30%. On April 30, Luke repaid $1,500, and concurrently the annual interest rate decreased to 5.10%. On June 30, Luke repaid the total amount borrowed, along with interest. Determine the interest amount to be repaid.

• A) $51.80
• B) $52.67
• C) $53.48
• D) $54.32
• E) $55.15

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Definitions:

Critical Thinking Attitude

The disposition to engage in thoughtful analysis and ask questions rather than accepting information at face value, essential in problem-solving and decision-making processes.

Radiograph

An imaging technique that uses X-rays to view the internal form of an object, typically used for medical diagnosis.

Fractured Arm

A break in one or more of the bones in the arm, resulting in pain, swelling, and diminished function that requires medical treatment.

Critical Thinking

The ability to objectively analyze and evaluate issues in order to form a judgment, often requiring reflective, analytical, and evaluative thinking skills.