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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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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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