How Much Interest Will Be Earned on $8,000 Over a Period

question 37

Multiple Choice

How much interest will be earned on $8,000 over a period of four months if the interest rate is 6.5%?

• A) $7,830.34
• B) $173.33
• C) $169.66
• D) $130.00
• E) $26.00

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Definitions:

University Of Minnesota

A public research university located in the Twin Cities of Minneapolis and St. Paul, Minnesota, known for its education and research programs.

Foreign Tax Credit

A non-refundable tax credit for individuals who have paid taxes to foreign countries, aiming to reduce double taxation on the same income.

Foreign Income Taxes

Taxes imposed by a foreign government on income earned within its jurisdiction by non-resident individuals or entities.

U.S. Tax Liability

The total amount of tax owed to the United States government by an individual or entity for a given tax year.