What Annual Simple Interest Rate Would Be Needed for $55,000

question 87

Multiple Choice

What annual simple interest rate would be needed for $55,000 to grow to $60,000 over a term of 295 days?

• A) 12.34%
• B) 10.31%
• C) 11.25%
• D) 9.09%
• E) 8.33%

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Definitions:

Consumer Surplus

The discrepancy between what consumers are prepared and capable of spending on a product or service versus what they end up paying.

Decreases Price

A reduction in the cost or value of a good or service.

Consumer Surplus

The variance between the overall sum consumers can and will pay for a good or service and what they genuinely spend on it.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive (higher market price).