You Borrow $10,000 and Will Pay Back the Entire Amount

question 67

Multiple Choice

You borrow $10,000 and will pay back the entire amount in 10 years. You are charged 6 percent interest per year. How much interest do you pay on this loan?

• A) $6,000.00
• B) $7,715.61
• C) $7,908.48
• D) $11,193.97

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Definitions:

Cost Estimation

The process of forecasting the likely costs of a project or production, based on various factors and historical data.

Data Collection

The process of gathering and measuring information on variables of interest, in an established systematic fashion that enables one to answer stated research questions, test hypotheses, and evaluate outcomes.

Activity Based Costing

A costing method that assigns costs to products or services based on the resources they consume and the activities they require.

Cost Behaviour

The way in which a cost changes in relation to changes in business activity levels.