3. Mr. H needs to borrow $13,000 for 3 years. He has a poor financial history, most lenders are willing to charge him a higher interest rate. He eventually finds a lender who would lend him the money at a rate of 15% per annum, compounded monthly. How much will Mr. H have to pay in compound interest to the lender? O O A) The compound interest Mr. H will have to pay is $7,331.22. The compound interest Mr. H will B) have to pay is $7,891.21. The compound interest Mr.H will C) have to pay is $5, 745.86. The compound interest Mr. H will D) have to pay is $6,777.07.
3. Mr. H needs to borrow $13,000 for 3 years. He has a poor financial history, most lenders are willing to charge him a higher interest rate. He eventually finds a lender who would lend him the money at a rate of 15% per annum, compounded monthly. How much will Mr. H have to pay in compound interest to the lender? O O A) The compound interest Mr. H will have to pay is $7,331.22. The compound interest Mr. H will B) have to pay is $7,891.21. The compound interest Mr.H will C) have to pay is $5, 745.86. The compound interest Mr. H will D) have to pay is $6,777.07.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:3. Mr. H needs to borrow $13,000 for 3 years. He has a poor financial history, most
lenders are willing to charge him a higher interest rate. He eventually finds a lender
who would lend him the money at a rate of 15% per annum, compounded monthly.
How much will Mr. H have to pay in compound interest to the lender? O O A) The
compound interest Mr. H will have to pay is $7,331.22. The compound interest Mr. H
will B) have to pay is $7,891.21. The compound interest Mr.H will C) have to pay is $5,
745.86. The compound interest Mr. H will D) have to pay is $6,777.07.
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