Suppose you lend $2,500 at 11.5% for 3 years. If the interest is compounded annually, how much interest will you receive in those 3 years? A) $862.50 B) $965.49 C) $3,362.50 D) $2,465.49
Suppose you lend $2,500 at 11.5% for 3 years. If the interest is compounded annually, how much interest will you receive in those 3 years? A) $862.50 B) $965.49 C) $3,362.50 D) $2,465.49
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
I need help with #4 please
![ܘ ܩܘ 7:31
1) The amount of money borrowed in a
transaction is called
A) interest.
B) principal.
C) internal rate of return.
D) present discounted value.
. | 69%
2) The amount of money a lender requires for
the use of funds is called
A) interest.
B) principal.
C) internal rate of return.
D) present discounted value.
3) Suppose you borrow $1,000 at 8% for 2
years. If the interest is compounded
annually, how much money will you owe
at the end of those 2 years?
A) $1,080.00
B) $1,160.00
C) $1,166.40
D) $1,345.60
4) Suppose you lend $2,500 at 11.5% for 3
years. If the interest is compounded
annually, how much interest will you
receive in those 3 years?
A) $862.50
B) $965.49
C) $3,362.50
D) $2,465.49
The current worth of claim on futuro](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb24b717-8ee5-4ca9-8061-74ddb7e91c1a%2F12c90dfd-b3ce-43e6-8017-15538cb847c8%2F4flebp8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ܘ ܩܘ 7:31
1) The amount of money borrowed in a
transaction is called
A) interest.
B) principal.
C) internal rate of return.
D) present discounted value.
. | 69%
2) The amount of money a lender requires for
the use of funds is called
A) interest.
B) principal.
C) internal rate of return.
D) present discounted value.
3) Suppose you borrow $1,000 at 8% for 2
years. If the interest is compounded
annually, how much money will you owe
at the end of those 2 years?
A) $1,080.00
B) $1,160.00
C) $1,166.40
D) $1,345.60
4) Suppose you lend $2,500 at 11.5% for 3
years. If the interest is compounded
annually, how much interest will you
receive in those 3 years?
A) $862.50
B) $965.49
C) $3,362.50
D) $2,465.49
The current worth of claim on futuro
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