If a Person Borrows $3,000 at 8% Interest and Never

question 36

Multiple Choice

If a person borrows $3,000 at 8% interest and never makes any payments, how much will the loan balance be after 10 years?

• A) $4,500
• B) $5,400
• C) $6,476.77
• D) $7,676.67

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Definitions:

Personal Costs

Expenses directly paid by an individual, often including living expenses, tuition, and personal bills.

Economic Activity

Every activity related to creating, distributing, and using products and services within an economic system.

Adam Smith

An 18th-century Scottish economist and philosopher, widely considered the father of modern economics, best known for his works on the principles of free market and the "invisible hand" concept.

Own Interests

Actions or decisions driven by personal benefits or gains, often discussed in the context of economic behavior or political decision-making.