Question 5 • CMS 2026-2027 Economics and Personal Finance HONORS INITIAL CREDIT
Use simple interest: fee = loan amount × annual rate × fraction of a year. For an 18-day loan, the fee is $1,200 × 0.39 × (18 ÷ 365) ≈ $23.08, which rounds to $23. The correct choice is $23.
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