A Physician Obtained a 10-Month Loan for $50,000 to Buy

Multiple Choice

A physician obtained a 10-month loan for $50,000 to buy office equipment at an annual simple interest rate of 8.95%. The simple interest on the loan is $5900. Identify a. the principal, b. the interest, c. the interest rate, and d. the time period of the loan.

A) a. $60,000; b. $6300; c. 10.55%; d. 11 months
B) a. $50,000; b. $5900; c. 8.95%; d. 10 months
C) a. $40,000; b. $6520; c. 7.75%; d. 8 months
D) a. $49,240; b. $5690; c. 11.25%; d. 9 months
E) a. $49,000; b. $6610; c. 10.95%; d. 12months