Asked by
Madison Fitch
on Dec 15, 2024
Verified
An investment will pay $3,000 six months from now. What purchase price will provide a rate of return of 12% simple interest?
A) $2,830.19
B) $3,180.00
C) $2,000.00
D) $2,500.00
E) $2,724.17
Rate of Return
The gain or loss of an investment over a specified period, expressed as a percentage of the investment's cost.
Simple Interest
Interest that is determined just on the original amount, or on the remaining unpaid portion of that amount.
- Get acquainted with the understanding and determination of numerical values in simple interest.
- Determine the impact of payments on loan principal under simple interest.
Verified Answer
JL
Learning Objectives
- Get acquainted with the understanding and determination of numerical values in simple interest.
- Determine the impact of payments on loan principal under simple interest.