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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You borrow $50 from a friend and pay back $55. What is the amount of interest paid?

$5
10%
Undetermined
5%

The correct answer is: $5

To determine the amount of interest paid, you simply need to look at the difference between the amount borrowed and the amount repaid. In this case, you borrowed $50 and repaid $55, which results in a difference of $5. This $5 represents the interest paid on the loan from your friend. It's essential to note that although "10%" and "5%" could be relevant if we were calculating the interest rate as a percentage of the principal, the question specifically asks for the amount of interest paid in dollar terms, which is simply the $5 difference. The option indicating "undetermined" does not apply here either, as we can clearly calculate the interest amount based on the information given. Thus, the calculation here confirms that the interest paid is indeed $5.