I need help with #4 please ܘ ܩܘ 7:311) The amount of money borrowed in atransaction is calledA) interest.B) principal.C) internal rate of return.D) present discounted value.. | 69%2) The amount of money a lender requires forthe use of funds is calledA) interest.B) principal.C) internal rate of return.D) present discounted value.3) Suppose you borrow $1,000 at 8% for 2years. If the interest is compoundedannually, how much money will you oweat the end of those 2 years?A) $1,080.00B) $1,160.00C) $1,166.40D) $1,345.604) Suppose you lend $2,500 at 11.5% for 3years. If the interest is compoundedannually, how much interest will youreceive in those 3 years?A) $862.50B) $965.49C) $3,362.50D) $2,465.49The current worth of claim on futuro

When interest on a principal amount is compounded annually, it means the interest is calculated and…

Answered: Suppose you lend $2,500 at 11.5% for 3…

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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

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