Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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What is the amount of interest on a $140,000 loan at 9.6 percent interest for 36 months?

  1. $161,280

  2. $13,400

  3. $40,320

  4. $483,840

The correct answer is: $40,320

To determine the interest on a $140,000 loan at an annual interest rate of 9.6 percent for a period of 36 months, you can use the formula for simple interest: Interest = Principal × Rate × Time 1. **Convert the annual interest rate to a decimal**: 9.6 percent as a decimal is 0.096. 2. **Determine the time in years**: Since the time given is 36 months, you convert that to years by dividing by 12: 36 months ÷ 12 months/year = 3 years. 3. **Inserting values into the formula**: Principal = $140,000 Rate = 0.096 Time = 3 years Therefore, the calculation will be: Interest = $140,000 × 0.096 × 3 4. **Calculating the interest**: First, calculate $140,000 × 0.096, which equals $13,440. Then multiply that by 3: $13,440 × 3 = $40,320. The result of $40,320 represents the total interest accrued on the loan over the 36

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