Doris Borrowed $5000 from a Finance Company at an Interest

question 168

Multiple Choice

Doris borrowed $5000 from a finance company at an interest of 8% quarterly. The loan is to be repaid in 3 equal payments, annually. What is the amount of the equal payment?

• A) $1948.69
• B) $1666.67
• C) $1419.51
• D) $1787.42
• E) $1856.77

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Definitions:

Simple Regression Equation

A mathematical formula used to predict the value of a dependent variable based on the value of an independent variable.

Linearity

The property of a relationship or function that can be graphically represented as a straight line, indicating a constant rate of change.

Independent Variables

Variables in an experiment or study that are manipulated or changed to determine their effects on dependent variables.

Times Series Models

Statistical techniques used to analyze time-ordered data points, often to forecast future trends or patterns based on historical data.