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How much can you borrow today if you promise to repay $20,000 two years from today at a compound interest rate of 20% per year? Select one: a. $13,888.89 b. $11,888.89 c. $16,888.89 d. $19,888.89

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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How much can you borrow today if you promise to repay $20,000 two years from today at a
compound interest rate of 20% per year?
Select one:
a. $13,888.89
b. $11,888.89
c. $16,888.89
d. $19,888.89

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