09/29 FA BW

25% as a decimal:  

• 0.25

• 02.5

• 25

• 2500

Answer explanation

The question asks for 25% as a decimal. Percent means 'per 100', so 25% can be written as 25/100. When we divide 25 by 100, we get 0.25, which is the correct choice among the given options.

Change 7.25% to a decimal.

• 7.25

• 72.5

• 0.725

• 0.0725

Answer explanation

The question is asking to convert the percentage 7.25% into a decimal. To convert a percentage into a decimal, we need to divide the percentage by 100. Therefore, 7.25% becomes 7.25/100 = 0.0725 which is the correct answer.

Principal = $500
Interest rate =5%
Time = 5 years
What is the interest earned?

• 95

• 105

• 125

• 135

Answer explanation

The interest for a principal amount of $500, at an interest rate of 5%, for a period of 5 years is calculated using the formula 'Interest = Principal * Interest Rate * Time'. Substituting the given values, we get 'Interest = $500 * 5/100 * 5', which gives $125. Therefore, the correct answer is '125'.

Dan borrowed $2,000 for 6 months at 12% annual simple interest rate. How much interest is that?

• $120

• $144

• $1,200

• $1,440

Answer explanation

The question asks about the interest amount that Dan would accrue on a loan of $2,000 for 6 months at 12% annual simple interest rate. Simple interest is calculated by multiplying the principal amount, the interest rate, and the time. In this case, it would be $2,000 * 12/100 * 1/2 (for 6 months). This calculation results in $120, which aligns with the correct option.