Final answer:
Statements about amounts raised and financial scenarios need to be analyzed for the correctness. Stocks typically yield higher returns over bonds and savings accounts, countering the notion that high risk always results in low returns. Simple interest calculations are based on the formula involving the principal, rate, and time.
Step-by-step explanation:
To determine the truthfulness of statements about amounts raised or financial scenarios, one must analyze the figures and context presented. For example, stating that $5,860 was raised when the actual amount listed is different would be false. Moreover, in financial comparisons such as the ones involving Freda and Frank's hypothetical house purchases, we must evaluate the accuracy of the presented appreciation in value and payments made.
Evaluating investment returns, stocks typically have a higher average return over time compared to bonds or a savings account, due to their potential for growth and dividends, albeit with higher risk. Conversely, bonds provide more stable but lower returns, and savings accounts offer minimal risk with the lowest return. Hence, it's not always true that high risk means low returns; high risk can correlate with high potential returns, which is why a diversified portfolio is often recommended to balance risk and reward.
Calculating simple interest, the interest from a $5,000 loan for three years at a 6% rate would be the product of the principal, rate, and time (PRT). And to find the interest rate charged for certain interest on a loan, one would divide the interest by the product of the principal and time.